Pundits slam stamp duty “money grab”

Adam Smith 29 June 2016

Piggy_Oz_Money_Shutterstock_450A move in New South Wales to hit foreign buyers with a stamp duty surcharge has been slammed.

The NSW Government has added a 4% stamp duty surcharge to residential property purchased by foreign buyers, a move which News Ltd has reported will add $1 billion to government coffers over the next four years. But industry figures have slammed the plan, saying the added revenue is not being used to help first home buyers.

“The government has found a scapegoat in foreign investors and is playing on xenophobia,” Gunning principal and former Real Estate Institute of NSW president Malcolm Gunning told News Ltd.

“They are choosing to single out Chinese investors when the real reason house prices are being pushed up is self-funded retirees who are purchasing properties for their super funds.”

Gunning called the move a “grab for cash” and “cop out” from the government, and slammed the lack of initiatives to help first home buyers. Laing and Simmons managing director Leanne Pilkington agreed, and told News Ltd the added revenue represented a wasted opportunity.

“We have a situation where the NSW Government has imposed additional stamp duty and land tax surcharges for foreign investors … but no plan to redistribute this enormous weight of funds to first home buyers, who need it most,” Pilkington told News Ltd.

More great ideas from finder.com.au

Get a life insurance quote
Get a life insurance quote

Find out what it costs to protect yourself and your family

More info...
Refinancing home loans
Refinancing home loans

Choose from offers with rates as low as 3.39% p.a.

More info...
Google Pixel
Google Pixel

Compare plans for Google's flagship Android phone

More info...
Christmas ideas
Christmas ideas

Visit our Christmas homepage for gift ideas, markets, travel & deals

More info...

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback