New Levy Threatens Property Industry Confidence
Property Council NSW Executive Director Katie Stevenson said new data showed a strong recovery in the NSW property market last quarter but warned that increasing property taxes and charges, including the planned ESL overhaul, could choke momentum.
“The data predicts more jobs, rising investment, and a strong pipeline of future projects – all clear signs that optimism is returning. However, if the government keeps increasing property taxes, charges and fees, that confidence could vanish overnight,” she said.
Ms Stevenson said the NSW Government is considering ESL changes that could scrap the charge on insurance policies and shift the full burden on property owners, including everyday ‘Mum and Dad’ investors using property to secure their financial future.
“The government wants property owners alone to foot the bill, even though many of Fire and Rescue NSW’s 140,000 annual callouts – road crash incidents, medical assistance, and animal rescue – have nothing to do with property. ESL should stand for ‘Everyone Shares the Load’.
“It’s an unfair hit on smaller landlords, many of whom will have no choice but to pass on the costs, pushing rents even higher when housing affordability is already in crisis,” Ms Stevenson said.
The Property Council’s State Budget submission calls for emergency services to be funded like health and education – through general revenue – rather than fully sourced from property owners.
“Another solution could be a user-pays system, where small contributions, such as a charge on vehicle registration, help to fund our emergency services,” Ms Stevenson said.
The Property Council/Procore survey shows confidence in the State Government’s ability to plan and manage growth remains in negative territory, and 24 per cent of businesses responding flagged historically high and growing concerns over rising property taxes and charges.
The survey highlights growing confidence across key indicators: hiring expectations up from +8 to +12, future work plans up from +30 to +51, and confidence in NSW’s economy up from +3 to +7. After months of decline, office property values rebounded into positive territory, rising from -6 to +10.
“The property sector is ready to drive economic growth, but we need the government to back that confidence with stable, supportive policies. Reform should encourage investment and housing supply – not hit Mum and Dad landlords with another tax,” Ms Stevenson said.
https://www.propertycouncil.com.au/media-releases/new-levy-threat-to-rising-property-industry-confidence