An increase in the Goods and Services Tax would be supported by the property industry if inefficient property taxes were abolished, according to the Real Estate Institute of New South Wales.
“We have long called for a review of state taxes,” REINSW Deputy President John Cunningham said.
Following Prime Minister Tony Abbott’s suggestion that it is time for a review of GST, Cunningham says it is time for taxes that inhibit our economic growth to be overhauled.
“We would be supportive of an increase in the GST rate if stamp duty, land tax and other narrow based, inefficient and inequitable state taxes were removed. We also believe that payroll tax is a inhibitor to employment and should be abolished,” he said.
“The Independent Pricing and Regulatory Tribunal (IPART) has described them [land tax and stamp duty] as inefficient, and REINSW believes it should be abolished in a modern tax system.
“If there is such a thing as a good tax system, it is broad based so as to provide government with its revenue but not impede or deter investment.”