SA Treasurer Stephen Mullighan says SA not considering abolishing stamp duty and replacing it with a broadbased land tax
The SA government has revealed why it does not support federal calls to abolish stamp duty and replace it with a land tax.
SA News
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The SA government does not support federal calls to abolish stamp duty and replace it with a land tax – with Treasurer Stephen Mullighan arguing such a policy would only further drive up house prices.
Mr Mullighan said the government was instead focused on measures to help first home buyers into the market, as well as plans to increase supply.
Federal Housing Minister Clare O’Neil this week supported the Business Council of Australia’s call for stamp duty to be abolished and replaced with an annual land tax.
She described stamp duty – a one-off charge when a property changes hands – as a “bad tax”.
“It prevents people from moving around the housing market in the way that suits them best and it creates costs for everyone who’s selling or buying a home,” she told ABC radio.
“The moves that some states and territories have made to wind it back or to remove it altogether are really positive and I’m really supportive of it.”
But state and territory governments – including the South Australian government – have rejected the call.
Mr Mullighan said abolishing stamp duty would not be an effective form of financial relief.
“We are not considering abolishing stamp duty and introducing a broadbased land tax – that would add a new annual tax bill to the family home, which is the last thing South Australians need, especially in a cost of living crisis,” he said.
“While stamp duty is an economically inefficient tax, abolishing it across the board would benefit the home seller, as house prices are driven up further.
“Instead, we have supported first home buyers buying or building their first home through abolishing stamp duty on new homes only – which increases overall housing supply and doesn’t benefit the home seller.”
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