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Stamp duty from property transactions has added over $9.4 billion to the economy of New South Wales, according to recent figures from the state government.
The figures indicate that stamp duty has now overtaken payroll tax as the state’s largest source of revenue.
Read more: Stamp duty rated as the most inefficient tax in Australia
“It’s good news for the New South Wales budget which is recovering from a very difficult 12 months,” NSW treasurer Dominic Perrottet said, as reported by ABC News. “It obviously helps providing government services to the people of our state in circumstances where we want the physical position of New South Wales to recover.”
However, Perrottet indicated that he isn’t willing to back down from plans to phase out stamp duty, telling ABC News that while the polarising tax “might be the number one revenue source the New South Wales budget receives, it doesn’t make it a good tax.”
Meanwhile, Tim McKibbin, chief executive officer of the Real Estate Institute of NSW (REINSW), said that the figure is “a timely reminder of government’s obligation to work with – not against – the industry it relies so heavily upon.”
“The real estate industry has rescued the NSW budget,” said McKibbin. “Real estate consumers have done the heavy lifting and real estate industry employees have worked hard to facilitate the strong market activity. The outcome is that we all benefit, not least of all the NSW government.”
McKibbin added that the industry that “provides so much from a social, economic, employment and revenue standpoint deserves a more receptive ear from government, particularly in relation to some of the contemporary issues affecting consumers and the market.”
“We believe there is an opportunity for a better environment for engagement between consumers, the industry, and government, as these latest stamp duty figures prove just how crucial the sector is to our state,” he said.
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