Australia’s peak property group has praised the NSW government for using “surging stamp duty revenues” to fund infrastructure.
Property Council of Australia executive director Glenn Byres said this week’s state Budget had taken advantage of a “thriving property market” to position NSW for growth.
"Surging stamp duty revenues have given NSW the freedom to invest in new infrastructure that will improve the productivity, mobility and sustainable growth of our cities and regions,” he said.
"Spending across major projects and basic urban infrastructure to support new housing is a good blend.”
Mr Byres said the Budget had been underpinned by a rise in stamp duties from both the residential and commercial market, which again proved the importance of the property industry.
“But like all state Budgets, it is exposed to any downturn – with 24 percent of all state tax revenue coming via transfer duty,” he said.
“It reinforces the case for a fundamental overhaul of taxation and we hope a mature debate follows about all options. Continued dependence on property taxes is not sustainable long term."
Earlier this week, REINSW president Malcolm Gunning said the decision by the New South Wales government not to reintroduce the First Home Owner Grant (FHOG) for existing properties had failed first home buyers.