The NSW Budget is a welcome sign of a strong economy but also a timely reminder of the case for continuous reform, according to the Property Council of Australia.
The New South Wales Government's half-yearly review is now forecasting a budget surplus of $272 million in the 2014-15 financial year, a $555 million improvement on the deficit predicted in the June budget.
However, rising stamp duty revenues is set to be a major contributor to the forecasted Budget surplus and NSW Executive Director Glenn Byres says this confirms the importance of policy reform.
“Surging stamp duties revenue is a large part of the story with forecasts showing they have been revised substantially upwards for the third consecutive year,” he said.
“And there should be wariness about the continued dependence on stamp duty as it leaves the budget deeply vulnerable to cyclical changes.
“Abolition of stamp duty should be front-and-centre in any assessment of tax reform options and we hope a mature debate emerges in coming months.”