House of Assembly Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia House of Assembly published Question Time Property Taxes Property Taxes Mr BROWN House of Assembly Florey Property Taxes Mr BROWN (Florey) (14:46): My question is to the Treasurer. Can the Treasurer inform the house of any recent real estate industry comments regarding unintended consequences of changes to property taxes? The Hon. A. KOUTSANTONIS House of Assembly West Torrens Treasurer Minister for Energy and Mining Property Taxes The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Energy and Mining) (14:46): I thank the member for his question and his keen interest in property taxes. It was to my great surprise that I saw an article on a property website—I am a big fan of realestate.com; I am constantly on the lookout— The Hon. V.A. Tarzia House of Assembly Hartley The Hon. V.A. Tarzia: Buying or selling? The Hon. A. KOUTSANTONIS House of Assembly West Torrens Treasurer Minister for Energy and Mining The Hon. A. KOUTSANTONIS: Who knows? I saw an article cited and it stated there were mixed reactions across the property sector to the state opposition's plan to cut nearly a third of the state's revenue in abolishing stamp duty. My young friend is confused: we do not apply the GST. The GST is a commonwealth tax that is given to the states. I am talking about the state's own tax revenues that we have and that is a third of it by cutting stamp duty. We have been told by our friends opposite that they have a plan to phase this out by 2041, but they have yet to explain how this measure will be funded and it hasn't gone unnoticed by the real estate sector, which is concerned. Those opposite are quite happy about it. The Real Estate Institute of South Australia's Chief Executive Officer, Andrea Heading, encouraged the opposition to define how and where they would fill the shortfall. She goes on to say: REISA supports a re-balanced, forward-looking taxation model that treats the property sector fairly... So that's one tick for the Leader of the Opposition because he is thinking about getting rid of this tax, like they did in the ACT when they abolished stamp duty and replaced it with a broad-based land tax on the family home. In New South Wales, where Liberal Premier Dominic Perrottet wanted to abolish stamp duty on residential properties, he also was going to replace it with a broad-based property tax on people's homes. So this is what REISA is awaiting. She goes on to say: …while ensuring the state has the revenue needed to deliver on South Australia's priorities. So they have raised the alarm. Hang on a second, there is one part of this puzzle that is missing. We get that you want to abolish stamp duty, but where is the tax to replace it? Where's the tax on the family home? Where's the tax on the family home, Mr Speaker? The Real Estate Buyers Agents Association of Australia is also concerned. Matt O'Donoghue is at pains to point out that the financial shortfall will be hard to replace, but more concerning are his comments about the impact on prices of family homes. He says: To abolish stamp duty will create more impetus for buyers to jump into the market, which will no doubt put pressure on current pricing on units, apartments and housing. He goes on to say: If demand increases in an already high-demand market, it could potentially push prices even higher, which would basically counteract the move to abolish stamp duty. These are the people who sell houses for a living. These are people whose business it is to sell houses. Those opposite need to think about this more carefully. Everywhere we have seen this tax abolished, a broad-based land tax has been brought in on family homes that have no land tax. That is a conversation that is coming to the South Australian community courtesy of members opposite. New South Wales and ACT, everywhere this tax has been proposed to be abolished, they have replaced it with a broad-based land tax. If you are talking about commercial properties, they already have a land tax. The Speaker House of Assembly The SPEAKER: Before I call the member for Frome, the Leader and deputy leader are becoming increasingly rowdy, and I just give you your first warnings.