NSW property sector receives timely boost

It is welcome news for the industry, following severe falls in listings, as well as auction clearance rates falling to its lowest point in 15 years.

REINSW CEO Tim McKibbin said, “Large supermarkets, home improvement shops and public transport all have people congregating in an environment not dissimilar to what is proposed for the property services industry, so we welcome the relaxation of these restrictions.” 

The property industry is fully cognisant of its obligations to ensure social distancing, the use of sanitising procedures and the like to protect the community, Mr McKibbin said. 

“Accordingly, the property services industry acknowledges and embraces its obligation to follow the procedures and processes prescribed by government to protect the community.” 

“The government has clearly demonstrated that the health and safety of the community is its primary obligation. While discharging that obligation, the economy was put into hibernation.” 

The REINSW has also come out supporting the NSW Treasurer’s commitment to overhaul the taxation regime currently applied to the property industry. 

While there is no such thing as a good tax, it is universally accepted that a broad-based tax system has less impact on economic activity. 

Taxation should be a consequence of a transaction, not a consideration, the property group said. 

“The acquisition of goods and services subjected to the impost of the goods and services tax (GST) – a broad-based tax – rarely if ever influences the consumer’s purchasing decision. By contrast, transfer (stamp) duty is a very narrow-based tax and is a significant cost attaching to the acquisition of a property.” 

“For this reason, transfer duty is a consideration, not a consequence of the transaction. 

“Accordingly, we see people renovating their property rather than selling and buying a property that better responds to their current lifestyle,” Mr McKibbin concluded.