The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterWed 15 Jun 16

Build More Homes, Less Tax Slugs Key To Affordability: Urban Taskforce

H

The announcement by the NSW Treasurer that a new four per cent tax on the purchase of residential real estate by foreign buyers will only slow down housing supply and increase the cost of housing, according to the Urban Taskforce.

New South Wales treasurer Gladys Berejiklian announced that next week’s state budget will include foreign investor surcharges on stamp duty in addition to land tax on residential real estate.

A little over 20% of property in Australia is sold to foreign investors.

Urban Taskforce CEO Chris Johnson said the move would negatively impact housing supply in NSW.

“The surcharge will double the stamp duty on an average house from $40,000 to $80,000 which will act as a disincentive to foreign investors,” said Mr. Johnson.

“The Treasurer’s expectation that this will raise more than $1 billion in taxes over four years assumes the market remains buoyant but the new tax could slow down housing supply“Included in the Treasurer’s package is a surcharge on land tax of 0.75 per cent for residential real estate owned by foreigners which will also act as a disincentive to invest in NSW," he said.

Mr Johnson said it seemed the NSW Government was looking to tax the booming housing property market to "generate funds for the state coffers", but he said a tax that penalises purchasers of new homes only acts as a "brake on investment".

“With suggestions from the NSW Government that Value Capture may be applied to new housing to fund transport infrastructure along with the current excessive stamp duty all house purchasers must pay, the tax component of a new house or apartment is becoming very high. The NSW Government must understand that the main reason that housing is so unaffordable in Sydney is due to the taxes they add.

“The Treasurer partly justifies the new taxes on foreign investors on the fact that they are less than those that apply in Victoria. Foreign investors are getting a clear message from both states that they are only welcome if they pay more taxes and this will inevitably slow down supply," Mr. Johnson continued.

“Sydney needs 33,200 new homes a year according to the Department of Planning, but last financial year only 27,348 homes were built. To help with housing affordability many more homes need to be built, and governments must encourage the market rather than add regressive taxes," he said.

NSW is now the third east coast state to look at foreign investment to boost state coffers after Victoria increased the surcharge for foreign buyers of residential property from 3% to 7% in its April budget. The change comes into effect from July 1. Victoria also trebled its land tax surcharge on “absentee landholders” from 0.5% to 1.5%.

The Urban Taskforce is a property development industry group, representing Australia’s most prominent property developers and equity financiers.

ResidentialAustraliaFinancePolicyPolicy
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
View All >
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
ESR building ESR completes delisting
Industrial

ESR Reveals New Team After Hong Kong Delisting

Leon Della Bosca
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
The proposal that would best Thirdi’s Dairy Farmers north tower has moved ahead after being declared state significant …
LATEST
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
2 Min
ESR building ESR completes delisting
Industrial

ESR Reveals New Team After Hong Kong Delisting

Leon Della Bosca
3 Min
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
3 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/build-more-homes-less-tax-slugs-key-to-affordability-urban-taskforce