Australian state governments will pocket $1.2 billion more than they expected as stamp duty revenue shoots up 18% across the country, compared to states’ forecast of 8%, UBS predicts.
UBS strategist Matthew Johnson, economist George Tharenou and analyst Andrew Lilley report today that NSW will outperform other states in beating its own stamp duty revenue forecasts for the 2013-14 financial year.
From their report:
Stamp duties typically account for about 5% of state budget revenues, so the percentage impact on total state revenues will be more modest.
UBS expects additional stamp duties to drag NSW’s total state revenue up almost $600 million (1%), while Victoria’s total state revenue lifts 0.3%, Queensland’s lifts 0.4%, South Australia’s lifts 0.2%, Tasmania’s lifts 0.3%, ACT’s lifts 0.7%, NT’s lifts 0.1% and WA’s total state revenue falls 0.1%.
Australian house prices and auction clearance rates have shot up in recent months, particularly in Sydney and Melbourne.
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