NSW needs ongoing planning and tax reform to ensure future growth
The outlook for the NSW economy in the Intergenerational Report released by the Treasurer today demonstrates the need for the Baird government to continue its record of strong economic decisions and tackle tax and further planning reform next.
“The Report makes clear that NSW is highly dependent on revenue from state taxes, including highly inefficient stamp duty which costs $800,000 for every $1,000,000 raised,” Ms Fitzgerald said.
“As the first state in Australia with an economy over a trillion dollars, NSW needs to sustain its economic momentum through reforming the inefficient state taxes identified in the report.
“Stamp duty is a rollercoaster tax and while NSW is enjoying the highs right now thanks to booming property markets, there is a need to guard against downside risks.
“Stamp duty is not only inefficient it makes mortgages larger and makes it harder for young people to buy their own homes.”
While dwelling approvals reached record highs in 2015 ABS data shows that approvals have declined in the first three months of 2016.
The Report also outlines the future housing challenge facing NSW with limited new land available for future release and ongoing investment required to ensure infill high-rise housing remains liveable, with access to services and transport infrastructure.
“Without further bold reform of the planning system, we will not maintain the levels of housing supply necessary to meet demand and improve housing affordability.”
The demographic changes to NSW over the next 40 years present a fiscal challenge to fund ever-growing health expenses.
“The Government should seize this opportunity to unlock age-appropriate seniors housing through the planning system, as evidence shows a significant health and fiscal return,” Ms Fitzgerald said.
Media contact: Jane Fitzgerald | M 0419 257 835 | E [email protected]