Vacant Residential Property Tax

The Hon. M.C. PARNELL (14:40): I seek leave to make a brief explanation before asking the Treasurer a question about vacancy taxes.

Leave granted.

The Hon. M.C. PARNELL: It is commonly reported and I think widely accepted that we have a housing affordability crisis in Australia generally, including in South Australia. Obviously, one answer is to build more houses, but another idea is that we could make better use of our existing housing stock. One tool that can be used to help achieve this is what is commonly referred to as a vacancy tax.

When property owners keep their properties vacant they are effectively withdrawing supply of occupiable properties from the market, which has the effect of increasing pressure on prices and rents. Imposing a financial cost on the owners of occupiable residential properties that are vacant for no good reason and for long periods encourages property owners to make their properties available for purchase or rent, and so helps to increase the supply of housing.

The Victorian government introduced a vacant residential property tax that commenced at the start of this year. It is a 1 per cent tax on the capital improved value of the taxable property and it applies to properties in the inner and middle areas of Melbourne that are unoccupied for more than six months within a calendar year. My question is: will the Treasurer consider a tax on residential properties that are vacant for long periods in order to free up unused housing for rental or purchase?

The Hon. R.I. LUCAS (Treasurer) (14:41): I am happy to say that I have considered it and rejected it, and I do not say that flippantly as having considered it since the honourable member just raised it. The issue has been raised over recent months, in particular as a result of the Victorian government decision, and there are a lot of people in the community—generally left of centre politics, the Labor Party or the Greens—who are quite attracted to the notion of introducing new taxes into South Australia.

We were elected, unashamedly, on a platform of reducing the tax burden on struggling South Australian families and struggling South Australian businesses. We were elected on a platform, unashamedly, of reducing overall tax levels. We were elected on a platform, unashamedly, of saying no new taxes. I am sure the honourable member and others seeking to hold this government to its myriad of policy commitments made before the election—one of which was no new taxes—would not want the Marshall Liberal government to break a clear, explicit and unequivocal commitment to no new taxes by going down the path of introducing a vacancy tax.

I am sure the honourable member, or indeed members of the opposition, can come up with lots of bright ideas for new taxes; it is in their DNA after 16 years. Anything that moved they sought to tax. This parliament and, in particular, this chamber proudly rejected at least two of those new notions of taxes in South Australia. There will not be a proposal for new taxes such as the vacancy tax under a Marshall Liberal government.