Treasurer Rob Lucas rules out further relief to first home buyers after revelations of $200m stamp duty windfall
The Treasurer has rejected calls to provide more relief to first homebuyers in next week’s state budget, despite a $200m stamp duty bonanza.
SA News
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The state government is facing calls to give more stamp duty relief to first home buyers following revelations that the tax has generated a bonus of more than $200m this financial year.
But, Treasurer Rob Lucas explicitly ruled out any new relief in next week’s budget, saying it would only intensify problems caused by South Australia’s already “overheated” housing market.
It was revealed on Tuesday evening stamp duty receipts for the 2020-21 financial year had come in at more than $200m over government expectations.
Mr Lucas swatted calls from the industry to use the new money to provide more incentives to first home buyers who were battling against rocketing house prices.
“There’s no prospect in the world we will be introducing further stamp duty relief in next week’s state budget,” Mr Lucas said.
“We’ve already got an overheated housing market at the moment and all it would do is add to the significant (demand) problems we’ve got.”
Urban Development Institute SA chief executive Pat Gerace said people were being “locked out” of the rental market and median house prices were rapidly increasing.
“We don’t think it’s too much to ask that the extra revenue that the government collects from housing goes back into making sure more and more people can get a roof over their head.”
Mr Gerace renewed calls to abolish stamp duty for new houses under Adelaide’s median house price, which was $518,000 and climbing in the March 2021 quarter.
A home at the median house price would attract $22,320 in stamp duty.
“There is no stamp duty on commercial property and large commercial property owners have enjoyed land tax cuts, but stamp duty hits first home buyers, downsizers and mums and dads,” Mr Gerace said.
Mr Lucas said significant relief was already on offer in the form of a $15,000 First Home Owner Grant, of which at least 3258 South Australians have taken advantage of so far this financial year.
This is up from 3128 for all of 2019-20.
Real Estate Institute SA boss Barry Money agreed the stamp duty system was an “obstacle” that needed to be “reviewed” – but said the first priority should be using the $200m windfall to support those who work in the real estate industry, such as agents.
He said first home buyers should also be “considered” when using the cash influx, as well as building social and affordable housing.
Adelaide lawyer Alicia Cardone, 24, has been looking to break into the property market for the last four months, but is struggling to overcome soaring prices.
“I just look at the prices and think I probably can’t afford anything,” she said.
Ms Cardone said any stamp duty relief in next week’s state budget would be welcomed.
“I feel like, especially now, the prices are really high.
“When I look at the size of the block, the number of bedrooms and bathrooms, I always think it’s not worth the price.”
Ms Cardone said she had narrowed her sights on the western suburbs, but might need to look elsewhere for more affordable properties.
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