Wednesday, April 25, 2012

House Unit Sales Slowdown Creates Gap in Victoria Budget

Housing shortfall hits Victorian budget
The government said revenue from stamp duty was about 10 per cent of the state's revenue each year while this year's $366m downgrade represented an 8 per cent cut.

. . .

"The state has experienced a huge loss in stamp duty, primarily as a result of a material slowdown in the property market since October 2011," he said.

"Since we handed down the budget update in December, we have lost $1.13 billion in stamp duty across the forward estimates, including $366 million this financial year.


jesse said...

Procyclical tax policy. That ouches.

GG said...

Sin taxes run another risk, they might dissuade the activity (like smoking, or flipping houses) but they also addict the government to the income from them, which doesn't create the right policy incentives.