Would a reduction in Stamp Duty increase property turnover?

April 30, 2012 15:42

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Evidence in other states suggests it would.

REINSW said its research showed that when property transfer taxes were cut in Western Australia and the Northern Territory, government revenues actually increased.

Between 2003 and 2006, WA cut property transfer duties by 0.9 per cent, yet related revenues rose by $706 million.
Similarly in the NT, property transfer rates were cut by 0.45 per cent and resulted in an increase of $20 million in related revenue – a rise of 20 per cent.

Stamp duty in NSW is now so high that it really is a disincentive to people moving. Perhaps the government should think about it laterally and look at what might happen with a decrease in duty.

rebonline.com.au

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About the Author

Name	Leanne Pilkington
Title	General Manager

Leanne has over 25 years experience in the real estate industry and in this time has developed an extensive knowledge of the full spectrum of real estate services. She has a thorough grasp of the issues that affect the NSW property market.

In her role as General Manager, Leanne oversees the operation and growth of the entire Laing+Simmons group, as well as focusing on the growth and development of each franchise. She plays an instrumental role in developing new products, services and training systems to meet the varying needs of each franchise.