REISA welcomes new budget but seeks more focus on housing

The Real Estate Institute of South Australia (REISA) has welcomed the continued emphasis on infrastructure throughout the region, but was concerned with the lack of investment in the housing sector.

The 2021-22 State Budget handed down by the South Australian (SA) Treasurer Rob Lucas maintained a strong economic focus but should have included more assistance for the property sector, according to REISA.

“Overall, we commend the Marshall Government’s continued emphasis on health, the economy and infrastructure. These are important initiatives for our state,”  REISA Chief Executive Officer Barry Money said.

“There is significant investment of $875.7 million for regional initiatives including roads and education facilities, which will be welcomed by our regional REISA members. We also applaud the abolition of payroll tax for small businesses with payroll less than $1.5 million per year.

“In terms of property-specific initiatives, we certainly welcome the reduction of the top land tax rate from 3.7 to 2.4 per cent, the 50 per cent discount on land tax on new build-to-rent housing projects, which should boost activity in that sector.

“The land tax relief for those caught by rule changes in land tax aggregation is also a positive move.”

The REISA believes the success of the real estate sector is crucial to the State Government and its budget strategy.

“Property taxes and stamp duty now comprise close to 37 per cent of state taxation revenue compared with the previously budgeted 34 per cent,” Mr Money explained.

“Given the huge boost to the state’s coffers from taxation on real estate and stamp duty revenues, we were keen to see other specific measures for the real estate sector, in particular an increase in benefits to first-home buyers and more to improve the supply of social housing across both the regional and metro areas.

“Making our state competitive, and a great place to live and to do business are stated aims of the Marshall Government and we are keen to continue our collaboration with the State Government to address key issues that matter to our industry.”

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