The Property Council of Australia has today presented NSW Treasurer Andrew Refshauge with new evidence that the vendor tax is driving millions of dollars of job-generating investment interstate.
The Property Council again called on the Government to abandoned the failed vendor tax experiment before further harm was done to the state’s economy.
Figures from the respected real estate firm CB Richard Ellis show that transactions of commercial property in NSW plunged by half a billion dollars in the last six months of 2004 compared to the same period in 2003. At the same time, transactions in Victoria leapt by more than $900 million and Queensland transactions were up by $840 million.
NSW executive director Ken Morrison said it was the first evidence that the NSW vendor tax was causing investment in job-generating commercial property to flee interstate.
“It is common knowledge that the vendor tax has been a revenue failure for the Government, taking in only $123 million in the first five months of the year, well short of the original $690 million budget.
“Now the evidence is emerging that the tax is driving investment interstate.
“That means lost opportunities for NSW and lost revenue for the Government which missed out on around $25 million in purchaser stamp duty on these transactions.
“We think the new Treasurer should have a fresh look at this tax and use the May state budget to end what has become a failed tax experiment.”
Mr Morrison said NSW was not in a fiscal crisis and did not need to hang on to this harmful tax.
“Treasury’s own forecasts show NSW will be in surplus by $1.4 billion by 2007/08. “Plus we are now getting the benefit of GST revenue flows, worth an extra $278 million this year alone.
“NSW would be better off without this failed tax.”
Sales of commercial property
|
NSW |
VIC |
QLD |
Last 6 months 2003 |
$3,200 m |
$860 m |
$860 m |
Last 6 months 2004 |
$2,600 m |
$1,800 m |
$1,700 m |
Difference |
-$600 m |
$940 m |
$840 m |
Source: CB Richard Ellis
Media contact:
Ken Morrison, NSW Executive Director, 0412 233 715 or 02 9336 6906
