Construction industry push for stamp duty cuts prompted by dire housing forecasts

Dire housing forecasts have prompted renewed calls for stamp duty cuts — which the construction industry argues could deliver the State Government a $35 million economic windfall.

• Push for SA land tax in place of property stamp duties

Dire housing forecasts have prompted renewed calls for stamp duty cuts, which the construction industry argues could deliver the State Government a $35 million economic windfall.

New figures released by the Master Builders Association (MBA) suggest the abolition of stamp duty on newly-built homes would boost government coffers by between $17.6 million and $34.5 million based on the state’s median house price of $470,000.

The report, prepared by management consultancy Hudson Howells, argues additional GST and payroll tax revenue flowing from heightened building activity would more than offset lost stamp duty income.

It says the changes would stimulate construction of up to 1960 additional houses and create up to 4700 new full-time jobs.

MBA SA chief executive Ian Markos said the figures supported his group’s campaign for stamp duty relief to first-time buyers, with a view to full abolition on new homes in the longer term.

“We have suffered 14 consecutive months of declining building approvals, and the latest industry forecast is for a decline in ... each of the next four years,” he said.

The Urban Development Institute wants exemption on new homes valued up to the state’s median price, with a long-term view to abolition.