Stamp duty on South Australian homes must be abolished to keep young people in the state, says the Master Builders Association

LOANS to first homebuyers in Victoria and New South Wales have gone “gangbusters” since the scrapping of stamp duty says the South Australia’s builders’ lobby which is calling for similar reform.

The Master Builders Association wants stamp duty abolished on homes valued under $450, for first homebuyers. Picture: Tait Schmaal

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SOUTH Australia’s builders’ lobby is calling on politicians to ease the tax burden on first-time buyers, saying the move has gone “gangbusters” interstate.

Analysis of ABS data by the Master Builders Association of SA shows that the rate of first-home buyer dwellings financed in Victoria and NSW during the second half of last year, compared to the previous six months, was about four times higher and nearly seven times higher respectively, compared to SA.

The uplift has coincided with both states abolishing stamp duty on properties of up to $600,000 and $650,000 respectively.

MBA chief executive Ian Markos has jumped on the figures to urge political parties ahead of the State Election to follow suit and eliminate stamp duty in SA on new builds up to $450,000 saying the state was being left behind.

MBA chief executive officer Ian Markos

“This policy is a boost for first home buyers and will also stimulate the flat housing sector, protecting jobs. We think it is an essential strategy for South Australia’s future,” he said.

“Everyone knows young South Australians are leaving the state in droves.

“If we are serious about stopping the flow of South Australians interstate, we need to give them reasons to stay; a job and an affordable home.

In SA, which offers a $15,000 first homeowners’ grant, lending to first homebuyers increased by 325 homes to 2889 — a 12.67 per cent lift.

In Victoria, lending to first homeowners increased by 47.24 per cent — or nearly 6000 homes financed — while in Sydney an extra 6388 loans were issued to first homebuyers, up 80.95 per cent since stamp duty was cut.