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The state government is constantly seeking ways of making South Australia more attractive to its brightest and most entrepreneurial citizens, and taking a feather from Victoria’s cap is one way to do it, the Real Estate Institute of South Australia has said.
REISA CEO, Greg Troughton said South Australia's "brain drain" to the eastern states is already an issue in the state.
“Housing affordability is a major player in the decision of our young South Australians on where they want to live, work and play,” he said.
Mr Troughton lauded the Victorian state government’s move abolish stamp duty on homes up to $600,000, and has challenged the South Australian state government to do the same.
He called stamp duty a “heavy burden” on home buyers, one that is “severely” influencing the issue of housing affordability around the country.
“It is has long been established that stamp duty is a volatile and ineffective tax,” Mr Troughton said.
“While we recognise that property taxes are important to the state government, there is way too much reliance on them as their primary source of revenue.”
He also said that REISA has long called for a reform to the property taxation system in South Australia, with the introduction of a higher GST to compensate for any loss in stamp tax revenue.
The Victorian government announced this week that it will abolish stamp duty for first home buyers on purchases below $600,000.
Victorian Premier Daniel Andrews also announced that purchases of properties between $600,000 and $750,000 will receive a stamp duty concession applied on a sliding scale.
In addition, the Victorian government will establish HomesVic, a $50 million program which will co-purchase 400 homes and take an equity share of up to 25 per cent. Eligible applicants will include couples earning up to $95,000 and singles earning $75,000.
And, in regional Victoria the first home owners grant has been doubled. Home buyers building new homes in regional Victoria will be entitled to $20,000 as of 1 July 2017.
