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Vendor duty is a tax failure and should be abolished immediately.
Abolition is affordable. Removing vendor duty would reinstate NSW's competitiveness with other states and result in permanent pick up in purchaser duty revenue of at least $140 million annually.
The NSW Government can afford to abolish vendor duty. Despite the rhetoric, the NSW Government does not need vendor duty. NSW is set to achieve a budget surplus of $563 million in 2004/05, which is set to grow to more than $1.4 billion by 2007/08. This exceeds future surpluses in Queensland and Victoria almost threefold.
Vendor duty is driving investment out of NSW. Money which would have been spent on property in NSW is going to Queensland and other states or else spent on shares.
Vendor duty is unwarranted and unsustainable. This tax should be abandoned immediately.