The Times Australia
Business and Money

Removal of NSW land tax indexation amounts to tax grab by stealth


The removal of land tax indexation at the centre of tomorrow’s  NSW Budget amounts to a tax grab by stealth which will exacerbate the  housing crisis for those who can least afford it, the Real Estate Institute of NSW  (REINSW) says. 

REINSW CEO Tim McKibbin says the NSW Government’s plan to let the inevitable  increase in property values do the work of increasing taxes will end up hurting a familiar  cohort: renters.

“Given the high cost of holding a residential property, adding to the tax burden will only  place additional pressure on investment returns, leaving landlords two undesirable  options. They can either pass the extra cost onto tenants or sell their investment  property, taking more homes out of an undersupplied rental market,” Mr McKibbin says.

“This move will have the same effect as not indexing the stamp duty brackets. It is a tax  grab by stealth and at a time when we desperately need to encourage investment in  residential property, increasing tax will have the complete opposite effect.

“Similarly, removing land tax indexation will have severe ramifications for commercial  tenancies. Landlords will pass on the additional land tax to the tenant and with  businesses already doing it tough, many will find the higher costs too much to bear.

“REINSW has consistently called for property tax reform as a critical part of a  coordinated solution to address the housing crisis in NSW. But instead of tax reform, all  we get is more tax, and more broken promises,” Mr McKibbin says.

Mr McKibbin says that while increasing the tax burden on foreign investors may be politically popular, deterring investment in the state’s rental market may likewise not be  in the best interest of tenants. 

“For people struggling simply to find a home to rent, whether the landlord is local or  foreign seems largely irrelevant, and if only 0.6% of NSW housing stock is foreign owned, reform in this narrow area is immaterial,” he says.

The boost in investment in better training for town planners to be detailed in tomorrow’s  Budget is, on the surface, a welcome measure for a housing market crippled by housing  supply delays. However, the REINSW says it’s a move which addresses the symptoms  while ignoring the cause. 

“At face value, the investment in better planning and technology to expedite  development approvals is a positive move which recognises the unacceptable delays  plaguing the housing supply response. But in reality, it ignores the root cause of the  problem,” Mr McKibbin says.

“Government needs to impose service level standards on Councils rather than treating  them as an unaccountable monopoly. For Councils themselves, it’s time to rise above  local politics and accept that to accommodate an increasing population we need to  accept higher density living.
 
“Building high quality, higher density properties adjacent to or above transport routes is  the future. It’s incumbent on Councils to either deliver this in their local Government  areas, or be alleviated of the responsibility,” he says.

Times Magazine

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Science Behind Reverse Osmosis and Why It Matters

What is reverse osmosis? Reverse osmosis (RO) is a water purification process that removes contaminants by forcing water through a semi-permeable membrane. This membrane allows only water molecules to pass through while blocking impurities such as...

Foodbank Queensland celebrates local hero for National Volunteer Week

Stephen Carey is a bit bananas.   He splits his time between his insurance broker business, caring for his young family, and volunteering for Foodbank Queensland one day a week. He’s even run the Bridge to Brisbane in a banana suit to raise mon...

The Times Features

My shins hurt after running. Could it be shin splints?

If you’ve started running for the first time, started again after a break, or your workout is more intense, you might have felt it. A dull, nagging ache down your shins after...

Metal Roof Replacement Cost Per Square Metre in 2025: A Comprehensive Guide for Australian Homeowners

In recent years, the trend of installing metal roofs has surged across Australia. With their reputation for being both robust and visually appealing, it's easy to understand thei...

Why You’re Always Adjusting Your Bra — and What to Do Instead

Image by freepik It starts with a gentle tug, then a subtle shift, and before you know it, you're adjusting your bra again — in the middle of work, at dinner, even on the couch. I...

How to Tell If Your Eyes Are Working Harder Than They Should Be

Image by freepik Most of us take our vision for granted—until it starts to let us down. Whether it's squinting at your phone, rubbing your eyes at the end of the day, or feeling ...

Ways to Attract Tenants in a Competitive Rental Market

In the kind of rental market we’ve got now, standing out is half the battle. The other half? Actually getting someone to sign that lease. With interest rates doing backflips and ...

Top Tips for Finding the Ideal Block to Build Your Home

There’s something deeply personal and exciting about building your own home. You’re not just choosing paint colours or furniture, you’re creating a space that reflects your lifes...