Sydney property market gives NSW budget a boost

by Julia Corderoy27 Oct 2014
The sizzling Sydney property market has given New South Wales a healthy cash injection, which could mean the budget for the state may reach a surplus earlier than expected.

Stamp duty revenue has jumped 50% or $500 million over winter compared with last year, according to figures published by Fairfax Media. About $1.5 billion in stamp duty on residential properties has been derived from nearly 50,500 sales, according to the Office of State Revenue figures.

This compares to just under 48,000 transactions between July and September in 2013-14, which delivered $1 billion in tax receipts.

However, Treasurer Andrew Constance told Fairfax that the stamp duty boost may be offset by "softish" payroll tax receipts, while cooling of the mining boom has also meant a downturn in royalties.

The impact to the budget won’t be clear until September, but the healthy boost thanks to the property market could see the New South Wales budget return to a surplus a year earlier than forecast.