Property Tax takes effect today, but most of all first home buyers need homes to buy says UDIA NSW

The NSW Government’s principal housing policy to enable first home buyers to opt for an annual land tax over stamp duty takes effect from today, 16 January.

Revenue NSW numbers show more than 2500 people have shown interest in the program which gives first home buyers the option to pay no stamp duty on properties up to $1.5 million. And while Labor has said it will discontinue the policy if elected, both parties have recognised that more needs to be done to support first home buyers entering the market.

UDIA NSW has long been supportive of measures to better help first home buyers purchase their own home. However, these demand side measures, which some have highlighted run the risk of increasing home prices, need to be matched by increased supply side measures. To bring prices down and make purchasing a new home more accessible we simply need more homes.

UDIA’s Election Manifesto – Let’s Tackle The Housing Shortage in NSW! – calls on both parties to commit to delivering on the National Housing Accord target of 1 million homes over five years and outlines 12 practical ways an incoming Government can address the supply challenge.

Political parties need to prioritise and deliver NSW’s fair share of the National Housing Accord, being 300,000 affordable and well-located homes over five years from 2024. This must include homes for first home buyers, as well homes for families, key workers, accessible and seniors housing, rental and social and affordable housing.

With rental prices increasing across Sydney by 15% over 2022 (source: CoreLogic) it is clear that demand for housing vastly outstrips our current supply. Both parties should look for opportunities to support the major housing providers to immediately boost the supply of new homes.

Questions remain around how effective the introduction of the Property Tax will be in supporting first home buyers getting into the market and the efficient movement between future homes.

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Media Enquiries:
Deanna Lane 0416 295 898 or dlane@udiansw.com.au