Wagga home buyers could be spared thousands of dollars in tax, following the findings of a report commissioned by the NSW Treasurer.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The report recommends the government to abolish stamp duty and instead implement a cheaper land tax system that is currently used in the ACT.
These measures are what RE/MAX director Dave Skow has been advocating for nearly ten years, alongside other members of the NSW Real Estate Institute.
"It's high on their list of priorities, but they've met with rejection after rejection after rejection over that ten year period," Mr Skow said.
"It's something the government hasn't wanted to take much stock of up until now, so this is the first hint that it may become a reality."
Read more:
Mr Skow said he was optimistic that the government would listen to these suggestions, now that its own report has put forward those same recommendations.
He said stamp duty was "prohibitive" for many in the industry, and that scrapping it would prove much more effective at kick-starting the economy than the HomeBuilder grants ever could.
"I've been hunting around for the last couple of weeks to hear of any cases of anyone using [HomeBuilder] for renovation, but no one that I know of has been able to take advantage of it," Mr Skow said.
Fitzpatricks Real Estate director Shaun Lowry said the abolition of stamp duty would help first home buyers get onto the property ladder, but he said he was wary about how the government would increase taxes elsewhere to make up for the shortfall.
"It's a considerable source of revenue for the government, so if they reduce it in one spot you may see it pulled from somewhere else," Mr Lowry said.
"Any kind of barriers to help people get into their property is something we'd be encouraging, but exactly what the right answer is for the government - we'll have to wait and see."
The government has indicated it is looking at an increase in GST, which could drive up the price of everything from food, to healthcare, to education.
Mr Lowry said he was sceptical about whether Wagga's housing prices would drop in the long term, saying that the market had a habit of adapting to those changes over time.