South Australians building new homes are being slugged $237k on government taxes and costs

South Australians are paying up to 40 per cent of the total value of home and land packages on government taxes and costs – up as much as 90 per cent since 2019.

South Australians are paying up to $237,000 – 40 per cent of the total value of home and land packages – on taxes, regulatory costs and infrastructure charges.

According to a report released by the HIA on Wednesday, red tape costs on a new house and land package in Adelaide have increased by $112,000 – up 90 per cent – since 2019.

Taxes on new apartments in Adelaide are up by 55 per cent ($65,000) in the same period.

The report, which was commissioned from Centre for International Economics, showed the cost imposts were contributing to the state’s housing crisis.

South Australians are paying 40 per cent of the total value of home and land packages on taxes, regulatory costs and infrastructure charges, according to a new report. Picture: Walker Corporation

“Doubling the taxes on new homes in Adelaide does not result in more homes built, nor does it result in more affordable homes,” the HIA said in a statement.

“South Australia has seen an influx of interstate migrants looking to move in search of more attainable homeownership opportunities.

“At the same time, the value of taxes and delays with getting land to market have added greater cost to building new homes in Adelaide.

“As a result, the volume of new homes built is failing to keep up with growing demand because of the higher cost of delivering new house and land packages to market.”

Adkin and Krutika D’Souza, 34 and 35 respectively, moved from India to Adelaide eight years ago and have recently taken a “leap of faith” into the housing market.

The taxation percentages were “absolutely baffling” and “just ridiculous”, Mr D’Souza said.

Krutika and Adkin D’Souza have felt the pinch of house taxation costs. Picture: Supplied

The pair have been working with Burbank Homes on their $600k house and land package, but are feeling less optimistic about the future of housing.

“I had a few mates move down to Tasmania because they couldn’t afford the housing in South Australia,” Mr D’Souza said.

“It’s always good to be optimistic, but with the current situation it’s probably one in one million that things change.

“There’s literally no option... we’re getting older, we want to start a family, it was now or never and we had to take the leap unfortunately.”

The report also showed it takes about a year to get development approval for subdivision in SA. Picture: Nick Clayton.

To help deliver more housing, the HIA urged the state government to “strongly consider removing the tax and regulatory barriers to building more homes”.

“With industries such as defence looking to grow in South Australia, it is imperative that the State Government helps lower the cost of delivering new homes to house a growing population.”