Grievance Debate

Stamp Duty Concessions

The Hon. V.A. TARZIA (Hartley—Leader of the Opposition) (15:07): I rise today to speak about the great Australian dream of home ownership. Recently, we were out with people such as Michael. Michael is around 30 years old. He has been trying to save for a home for a few years now. He only saves around $5,000 or $10,000 a year. For him, and for many young people like him, this dream of home ownership is getting so far away.

We know that the Australian dream has been long built around a place to call home, a stake in society, a place to conserve and a place to protect. Certainly, we on this side of the chamber believe in that dream but unfortunately it is slipping away for many young people.

The Liberal Party founder, Sir Robert Menzies, who championed this vision, this concept of a home-owning democracy, understood, as we understand, that the foundation of a strong society actually lies in empowering people to build lives of stability. We know that today, unfortunately, that vision is under threat because home ownership is slipping beyond reach, eroding that very aspiration that does fuel many of those values that we share.

We have been quoting, and we will quote again, the 2025 Demographia International Housing Affordability Survey that shows that Adelaide is actually the sixth least affordable housing market in the world. ANZ's Housing Affordability Report ranks Adelaide, in fact, as the second least affordable capital city in which to buy and the least affordable capital city in which to rent in the entire nation. It goes on to talk about over 56 per cent of an average South Australian's income is now swallowed up by a mortgage. Many people would actually call that mortgage distress.

It is not just a personal crisis, it is also hurting our economy. That is why we feel the need to act. One of the biggest impediments, one of the biggest barriers to realising the dream of home ownership is: what can we do as a state to alleviate that? One of those is stamp duty. We know that stamp duty is an inefficient tax and it punishes ambition. Other governments in the past have seen fit to get rid of stamp duty on commercial properties. What about in respect of residential properties?

For this state government, we know that so far this tax has been treated, this sector has been treated, like a cash cow bringing in billions of dollars in revenue.

For first-home buyers, the up-front cost of tens of thousands of dollars can crush their hopes of entering the market, and we know that there are many aspiring first-home owners in South Australia who see stamp duty as a major hurdle. It is a tough tax. It is a tough tax that hits new buyers hard and diminishes their purchasing power. It reduces their ability to bid for a property and that also restricts economic growth.

As opposition leader, my team and I have announced a policy of stamp duty relief for first-home buyers. This is a step to restore fairness. I have been really quite pleased to see the take-up and interest in this, whether it is real estate agents, whether it is mortgage brokers, whether it is young people who are trying to get into a home or whether it is their parents. There has been a lot of positivity around this announcement because we know and they know that by lowering the stamp duty impost for first-home buyers we can boost housing turnover and also affordability for the next generation as well.

The housing crisis is threatening more than just individual aspirations. It undermines the idea of a society where hard work leads to home ownership but also responsibility. We have seen that the average size of a new home loan in South Australia and Australia has surged in recent times, while full-time earnings have failed to keep up. This gap traps young families, draining disposable income, and it also comes at the opportunity cost of investments and things like their skills, education and also household essentials. Without reform, we risk a generation that will be disconnected from the values that we hold dear, like a place to call home, family and opportunity.

Menzies knew that society thrives when people have something to protect and home ownership is that anchor. Unlocking home ownership for young people can open the door to future families. Under Labor we see the brain drain has resumed again with young South Australians looking interstate for opportunities. Housing affordability, no doubt, is also a significant factor in making the decision to uproot your life and also move. I want to see South Australians, young South Australians, choosing to live and work and stay in South Australia because we know home ownership is a cornerstone of financial security and personal stability and empowers South Australians to build a brighter future. It is one of many parts of the housing challenge, but by addressing this barrier of stamp duty for first-home buyers, we can revive this vision, empowering young South Australians to build, and also contribute to a thriving state.