The Real Estate Institute of South Australia (REISA) wants its state government to replicate the move taken by the Victorian authorities in abolishing stamp duty for first homebuyers as it strongly believes the step would stem the outflow a huge brain drain from moving interstate.
“The state government is always seeking ways of making South Australia more attractive to our brightest and most entrepreneurial citizens so why are we giving them, even more, reason to move the East?” REISA’s chief Greg Troughton said.
“We already have a brain drain to the eastern states.
“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.
Troughton added the state government needs to follow through the decision of the Victorian government and remove stamp duty on homes up to $600,000 immediately so that the property cycle can turn without impediment or unnecessary interference.
“While I am delighted that our eastern neighbours have seen the light and recognised that housing affordability is being severely affected by this heavy burden upon homebuyers, it is time now for South Australia to take this problem seriously,” Troughton said.
“It has long been established that stamp duty is a volatile and ineffective tax. While we recognise that property taxes are necessary to the state government, there is way too much reliance on them as their primary source of revenue.”
Troughton has also called for reform of the property taxation system in South Australia and the introduction of a higher GST to compensate the state for any loss in the stamp tax revenue.