Daily London
South Australians wanting to buy property wouldn’t have to pay stamp duty under an ambitious plan announced by the state opposition today.
It says it would shake up the property market and make it easier for people to buy homes, but critics are questioning where the money is coming from.
Under the Liberals’ plan, the tax would be phased out in stages by 2041.
“We know that stamp duty is an inefficient tax,” Opposition Leader Vincent Tarzia said.
“We know it makes it harder for young people to buy a new home and makes it harder for older people to downsize.”
However, the proposed policy has drawn mixed reactions, with questions raised about its financial viability.
Treasurer Tom Koutsantonis has been particularly critical, highlighting the $1.6 billion a year in revenue that stamp duty generates for the state.
“This is the equivalent amount of money as firing every police officer twice,” Koutsantonis said.
“If your budget is cut by a third, can you deliver the same service?”
“If they can’t explain how they are going to pay for this, there will be cuts, severe cuts,” he added.
The opposition has insisted no new taxes will be raised to make up for the shortfall.
“There will be no new taxes under a Tarzia Liberal government,” the opposition leader said, adding that “we are not making any cuts to frontline services”.
But exactly how the policy will be paid for is yet to be seen, with the Liberals saying that plan will come closer to next year’s election.
