The property industry pays the highest of all industries in the state in taxes, equating to $20 billion every year, making up 54% of the state-sourced revenue and being the major source of income at the local government level apart from council rates.
Investment within the state is heavily influenced by the tax environment and it is critical that New South Wales ensures domestic and offshore investment for the delivery of homes, infrastructure and jobs in order to keep the communities and the economy strong.
A number of solutions are put forward by the Property Council to ensure NSW stays a competitive investment destination in the Asia Pacific:
- Addressing the cumulative impact of property fees, levies, taxes and charges that add to the cost of homes by empowering an existing NSW 'watchdog' to ensure supply and affordability is not jeopardised by the overall cost burden
- Improving the transparency around the collection of infrastructure levies from state and local government as well as how those funds are spent, and preparing an aggregated annual report
- Supporting growing communities by reintroducing an improved and indexed Local Infrastructure Growth Scheme to ensure they get their fair share of State funding
- Scrapping biodiversity charges under new legislation until the cost/price impact has been determined by government and advised to communities and industry, and appropriate transitional arrangements are in place
- Ensuring that all the Special Infrastructure Contribution (SIC) plans have appropriate transitional arrangements to ensure costs are factored into the land price rather than borne by the housing supplier or home buyer
- Complementing the future proofing CPI announcement by reviewing and realigning NSW stamp duty brackets to address bracket creep, ensuring fewer home buyers pay the top rate of tax and activity is stimulated
- Requiring local government to make infrastructure levies easily calculatable and accessible on their websites
- Giving IPART greater resourcing and power to assess more contribution plans and review and edit the essential infrastructure list
The Property Council recognises the need to find a sustainable funding source for infrastructure and government that doesn't severely hamper the property sector and greater economy.
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