Overview
- The state’s submission to a select committee urges cutting or redesigning the concession, arguing it has distorted the housing market.
- NSW Treasury says the policy has bolstered investor demand, lifting prices and making it harder for first-home buyers to purchase.
- Treasury-calculated lending shifted from $13 billion to investors and $10 billion to first-home buyers in 1994 to $139 billion versus $64 billion last year.
- ABS figures cited show home ownership falling from 71% in 1999–00 to 66% in 2019–20.
- The discount’s cost is estimated at about $23 billion nationally, including $8.7 billion from NSW, and it benefits higher-income investors the most.