Stamp duty: Stamping out Sydney’s housing crisis

While the government continues to reap dividends from stamp duty, The Daily Telegraph can ­reveal the number of homes this financial year has dropped almost 10 per cent compared with 12 months ago.

Couple Shae Oliver and Max Wilson, who hope to buy their own place by the time they’re married.

• Scott Morrison hits the home front with stamp duty calls for states
• Stamp duty should be abolished in favour of a structured land tax

STAMP duty must be slashed to ­revive a stagnant NSW housing market paralysed by the housing affordability crisis, the NSW Real Estate Institute and big business have claimed.

While the NSW government continues to reap vast dividends from stamp duty, The Daily Telegraph can ­reveal the number of homes sold so far this financial year has dropped almost 10 per cent compared with 12 months ago.

Last month was even worse, with prospective home sellers fleeing the market and leaving buyers with little options, forcing the number of housing transactions down 12 per cent.

Newly engaged couple Shae Oliver and Max Wilson, who hope to buy their own place by the time they’re married. Picture: Rohan Kelly

Reacting yesterday to ­federal Treasurer Scott Morrison’s call to the states to slash planning regulations and release more land to address housing affordability, the Real Estate Institute of NSW (REINSW) president John Cunningham said the main issue lay with an excessive stamp duty, which has surged above 4 per cent of the purchase price in Sydney.

The state government has collected more than $2 billion in stamp duty so far this financial year, only a 6.3 per cent fall from the same period last year. It is set to rake in more than $8.7 billion by the end of June 2017.

Business Council of ­Australia chief executive Jennifer Westacott welcomed the Treasurer’s speech but highlighted stamp duty ­reduction as an ­important step towards housing affordability: “Reducing state governments’ reliance on stamp duties would improve housing affordability and boost the economy. Deloitte Access Economics has found that replacing stamp duties with more efficient taxes could deliver a $3.3 billion boost to the economy.”

Federal Treasurer Scott Morrison has put the states on notice of soaring house prices.

Jennifer Westacott, CEO, Business Council of Australia says reducing stamp duty would help improve housing affordability.

Also imperative, the institute said, was the rezoning of land for more medium-density development.

“We need to get these rezonings, particularly in these middle-belt suburbs, which is where the price rises have been most significant,” Mr Cunningham said.

Buying a home in Sydney wouldn’t even be on the radar for Shae Oliver and ­fiance Max Wilson if not for the help of their parents.

The couple have been saving solidly for 18 months to buy on the northern beaches, but with even a two-bedroom apartment fetching at least $750,000, a 20 per cent home loan ­deposit remains out of reach.

“My parents are going to go guarantors, which means we don’t have to come up with a physical deposit. The equity they have in their property guarantees the loan,” Ms Oliver said.