Could NSW take a leaf out of the ACT's book?
The Real Estate Institute of New South Wales (REINSW) has suggested that NSW draw inspiration from the Australian Capital Territory's budget.
In a June 6 statement, the REINSW drew attention to a number of areas of the ACT budget that could be applied in NSW, particularly in the context of the state's property market.
Current home loan holders considering a mortgage refinance in order to move properties will be interested in the announcement.
What's on the table?
According to the REINSW, a decision by ACT Treasurer Andrew Barr to reduce transfer duty rates should be commended - and repeated in NSW.
"We applaud this decision from the ACT and believe that NSW should follow its lead. Stamp duty rates in NSW have not been reviewed for more than 40 years, which means that the average home is being taxed well beyond what Parliament initially intended," said REINSW President Malcolm Gunning.
Mr Gunning explained that despite the larger transfer stamp duty rates in the ACT compared to NSW on dwellings valued between $800,000 and $3 million, the ACT's approach is worth pursuing.
That's because the ACT's average home price is below $800,000, with such properties paying a lower rate. It's thought that the rates for such properties are "fairer" than in NSW.
Changes to the Pensioner Duty Concession Scheme in the ACT were also brought up by Mr Gunning, as well as the introduction of an Over 60s Home Bonus Scheme, which lowers the conveyance duty payable by older individuals who choose to change their living arrangements.
Referring to the ACT's new initiatives, Mr Gunning commented: "It is a win-win for everyone, providing support to all levels of the market including first homebuyers. We encourage Premier Mike Baird to apply these incentives in NSW in the upcoming budget."
Image credit: Robert Linsdell