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Going For Growth But Tax Reform Still Needed: NSW State Budget

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The NSW economy is geared for growth off the back of an infrastructure boom but will be better placed to sustain momentum through reforming state taxes, according to the Property Council of Australia.

NSW Executive Director Glenn Byres said, "This is a good budget that makes the right choices on the infrastructure needed to underpin the growth and liveability of our cities.""NSW is also enjoying the benefits of surging stamp duty revenue and booming property markets - and the Government has correctly prioritised support for housing construction.""Game-changing infrastructure projects are a central feature of the budget and will be accelerated once the proceeds from the poles and wires kick in.""Commitment to a new rail station at Barangaroo will help consolidate our standing as a global city by servicing Australia's largest urban renewal precinct and surrounding areas," Mr Byres said.

Managing Director of Industrial at Colliers International Malcom Tyson said the industrial sector would significantly benefit from the $68.6 billion in infrastructure committed to or planned for in NSW as it is critical in supporting industrial occupiers. Infrastructure projects such as the North West rail link, the Western Sydney Light Rail and the widening of the M5 are all important for the industrial industry.

"With Sydney projected to be home to an additional 1.5 million people by 2031, the industrial market will benefit from the increasing needs for housing and retail," Mr Tyson said.

RELATED: ‘Stamp Duty Out Of Control': Homebuyers Plied With 800% Tax Increase

Mr Byres said the Government's continued support for the housing construction sector is also welcomed as evidenced by the $400 million allocation to the Housing Acceleration Fund.

"The Budget also makes clear though that NSW is highly dependent on stamp duty, which makes homes less affordable and acts as a ballooning cost to the economy."

Mr Byres said stamp duty revenue has doubled in the past four years almost doubling from $3.6 billion in 2011-12 to $7.2 billion this year.

"It now accounts for over one quarter of all state tax revenue and is poised to top $8 billion in 2017-18.""Stamp duty is a rollercoaster tax and while NSW is enjoying the highs right now thanks to the Government's efforts to drive the economy, there is a need to guard against downside risks.""We hope NSW continues to step up in the national tax reform debate and begin shifting away from inefficient taxes that hurt housing affordability and the economy."

To see how the Budget affects you view the Budget Overview here.

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Article originally posted at: https://theurbandeveloper.com/articles/nsw-state-budget