tim mckibbin
Tim McKibbin says the spotlight will return to tax issues surrounding NSW property.
  • REINSW CEO says clearance rates will remain steady
  • Has criticised the proposed Victorian changes
  • Says no problem has been solved by taxing people for 'something they need'

Although this week will be more of the same – discussions surrounding housing affordability and taxation are expected to intensify soon, according to the Real Estate Institute of New South Wales (REINSW) CEO Tim McKibbin.

Mr McKibbin said that despite the clearance rate easing over the past few weeks, he expects the rate to be around 80% this week given they have remained at this level throughout the year.

“Vendors who have been hesitant to act and who might be preparing for a spring listing should consider whether waiting is really the best option, given current conditions,” said Mr McKibbin

“Volumes in recent weeks have held steady.”

He also raised affordability as the rental market continues to tighten, especially in regional NSW, which is “making it difficult to find a property…let alone save for a deposit”. He cited CoreLogic figures that reveal in the year to April 2021, regional rent values saw increases almost tripling that of the capital city markets.

Mr McKibbin then drew his attention towards the consideration of the amount of tax generated by property.

“We can expect the conversation around property tax policy to ramp up. Property tax hikes for people in higher brackets in Victoria have re-ignited the discussion in other states, while at the same time the NSW Government continues down the path of its proposed property tax alternative.”

“The tax burden property consumers bear is disproportionate. Property is something people need. On this basis alone, Governments should be doing all they can to reduce the cost for people to access something essential for life.”

Tim McKibbin, REINSW CEO

Last week, the Victorian Government announced a string of increased and new property taxes, which has attracted criticism.

“As we’ve seen in the outraged response to the tax increases floated in Victoria, no consumer or community problem is solved by making people pay more tax for something they need.”

Mr McKibbin added that REINSW is digesting the Federal Budget and the Opposition’s response before developing its own revised formal position on tax policy. He said this will be revealed in due course.

“It’s time to put it all on the table, across all three levels of Government, and spread the tax burden to other assets and transactions.”

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