Stamp duty critics warn of freefall

A coalition of groups including the Property Council and the Australian Retailers’ Association will lobby the NSW Government against imposing stamp duty on sales of investment properties. The group will meet with the NSW Treasurer and argue that the move could drive rents upwards, increase prices of new home lots and damage the market overall. The Urban Taskforce, representing subdivision developers, fears the tax will negatively impact on the prices of new homes while the ARA believes it will force retail rents up. The Property Council said the vendor tax will flow through to the NSW residential rental market, leading to a tightening in supply.