Login
ISCOVER
Business confidence in NSW has returned to the “low levels last seen during COVID lockdowns”, according to the state’s peak business organisation.
The survey, which included 1,118 businesses, showed the Business Confidence Index fell to -68.6 (from -30.6 last quarter) as businesses have been hit by rising costs, skills shortages, supply chain issues and have some concerns about higher interest rates and energy prices.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
It comes as the cash rate reached 1.85 per cent in August and inflation is expected to hit 10 per cent, which has also driven the fall in consumer housing sentiment, as reported by Westpac.
Westpac’s consumer housing survey found assessments of Australians that viewed now as a good “time to buy” were at historic lows.
Business NSW chief executive Daniel Hunter said families and businesses were feeling the impact of uncertainty at what is around the corner and urged governments to “get on with the job.”
Mr Hunter said whether it’s fast-tracking development applications or giving first home buyers the choice on upfront stamp duty or an annual property tax to help encourage movement of workers around the state, it’s time to “urgently embrace” productivity reform policies.
The survey also revealed that 62 per cent of respondents supported the NSW government’s proposal to provide first home buyers with a choice of paying an annual property tax or upfront stamp duty on properties up to $1.5 million.
Premier Dominic Perrottet announced changes to the NSW property tax system in June this year, which is set to give first home buyers the choice between paying an annual property tax or stamp duty.
The property tax will only be payable by first home buyers who choose it, and will not apply to subsequent purchasers of a property.
The state government has indicated the initiative will “lower the up-front costs of home purchases” to help boost the rate of home ownership in NSW.
In total, these measures will offer support to about 97 per cent of all first home buyers, or about 55,000 people per year.
Over the past 20 years, stamp duty growth across the state has surged above that of housing, according to a new Domain analysis.
As referenced in the data, this stark divide was observed across both Sydney and regional NSW at large.
According to the analysis, in the 20 years to March 2022, house prices increased by around 280 per cent. Comparatively, stamp duty lifted by 406 per cent over the same period.
Across regional NSW, the median house price grew by 324 per cent over this same period. However, stamp duty costs were reported as reaching 524 per cent across the two-decade stint.
“This demonstrates that stamp duty thresholds have not kept pace with house prices over time,” the report stated.
JOIN THE DISCUSSION