Tax reform needed

The Real Institute of NSW on Friday said it was time for the state government to stop discussing stamp duty “and take clear action”.

Regional manager Ben Foley said the Murray-Riverina NSW Business Chamber welcomed any debate on tax reform.

But Mr Foley said stamp duty could not be treated in isolation, as this would prevent true reform capable of creating greater efficiencies in the economy.

“There is currently a federal tax review and a federation review under way,” he said.

“We believe the time is now right to be discussing and debating these issues, as long as everything is on the table.

“And by everything we include stamp duty, we include GST, we include payroll tax – the whole box and dice.”

President Malcolm Gunning said  the institute had been highlighting the inefficiencies of stamp duty for too long without action from the government. 

“Stamp duty clearly distorts prices and adversely effects property transactions,”he said. 

“We have to stop the talk and start to see action. The state has got to put its own self-interest aside for the benefit of the broader economy. 

“While we are calling for an abolition of stamp duty, a first step, as a revenue neutral initiative, is to address the stamp duty brackets which have not been adjusted for 30 years.”

Mr Gunning said this would have no impact on the state because there was “clear evidence” that a reduction in stamp duty rates would generate additional sales.

“We recognise that ultimately if stamp duty is going to be abolished an increase in GST will be necessary, which will take involvement from the federal government,” he said.

Mr Foley said NSW taxes on business transfers cost $350 million a year and affected many of its Albury region members.

“Most other states have removed those taxes, but because they remain in NSW what it’s doing is eating into the savings of retiring business owners and discouraging mergers and start-ups actually happening,” he said.