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The RBA leaving interest rates on hold has put the NSW government under more pressure to get rid of stamp duty in the state, according to a leading industry commentator.
Laing+Simmons managing director Leanne Pilkington says interest rates are likely at their lowest point in the cycle so the time to help people get into the market is now.
“And it starts with getting rid of stamp duty,” she said.
"The NSW government has missed its chance to take a national leadership position in improving affordability for first home buyers with the Victorian government’s unveiling of the HomesVic plan.”
But she also emphasised that it's not too late to for NSW to address stamp duty.
"The opportunity remains to do more and the steady rate environment that is expected to prevail this year is the ideal time to act,” she said. .
"Stamp duty concessions are essential at the lower end of the market to avoid the deposits of first home buyers being eaten up by such a pointless tax.
"However, reform for those looking to downsize will also be important to free up established homes and give growing families greater options to upgrade.
"The natural spike in housing turnover that stamp duty reform would generate will obviously have significant benefits from an economic perspective, but more importantly it would finally provide choice - and hope - for those younger people serious about buying a first home.”
The REISA also lauded the Victorian state government’s move abolish stamp duty on homes up to $600,000, and has challenged the South Australian state government to do the same.
CEO Greg Troughton called stamp duty a “heavy burden” on home buyers, one that is “severely” influencing the issue of housing affordability around the country.
He said reform to the property taxation system in South Australia is long overdue.
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