While the Queensland Building Boost extension is a positive the government should look towards stamp duty changes to help new dwellings, according to a property investment group.
A national level of assistance is needed to stimulate development activity and stamp duty is one area that would make a big difference, said Aviate Managing Director Neil Smoli.
“In fact, the complete abolition of stamp duty for new dwellings is the most logical and potentially the most effective measure for Governments to take to stimulate development activity on a national basis,” Mr Smoli said.
“The Victorian Government has what seems a reasonable approach to stamp duty in terms of using concessions to stimulate new development, as the amount of stamp duty payable is reflective of how early an investor commits to purchasing an investment property, with those committing earlier in the development phase attracting the most significant stamp duty savings,” he said.
In New South Wales, the potential positive response for off-the-plan properties up to $600,000 being exempt from stamp duty is negated by the high price of properties in inner Sydney, Mr Smoli said. A multi-pronged approach should be taken by all governments to support the construction industry.
“The need for greater national consistency where stamp duty is concerned is clear.”