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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2025-11-12 Daily Xml
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Stamp Duty

The Hon. D.G.E. HOOD (15:38): Might I say, I have also experienced My Home Hospital. This is not what I intend to talk about, but I also had a very good experience, and I would like to thank them for the great care they provided me as well in some difficult moments. That is not why I am speaking today. I rise to speak on stamp duty, a tax that is proving to be a significant barrier to home ownership in South Australia and something that the Liberal Party has a plan to address.

Until recent years, Adelaide was renowned for its housing affordability. Unfortunately, that is no longer the case. As members in this place would be well aware, our city is now becoming notorious for its skyrocketing cost of housing. Indeed, I understand that over the last 20 years it has had the fastest increase in Australia, or very close to, of any capital city. Not only does Adelaide have the second most expensive housing market in the nation after Sydney at the moment, it is also ranked the sixth most expensive city in the world in which to purchase a home, behind the likes of Hong Kong, Sydney, San Jose, Vancouver and Los Angeles.

Stamp duty is in some places a 400-year-old tax, which is just not suitable, really, for a modern economy. It is inefficient and outdated, with tax brackets having remained unchanged in our state since 2002 while house prices have soared. The burden of stamp duty has slowed our housing market and is inhibiting the natural cycle of home ownership. This oppressive tax effectively traps people in homes that no longer suit their needs. It discourages older South Australians from freeing up housing stocks for younger families by so-called downsizing and locks in far too many first-home buyers, or locks them out of the market, I should say, completely.

It is not just a housing issue that we are dealing with here, but an economic one. When families and individuals are unable to sell their homes because of tax encumbrances, our economy is inevitably impacted due to the fewer jobs that all of that activity creates. Of course, that includes things like the trade industry, conveyancers, real estate agents, etc. These things have real impact. That is why the Liberals have announced an unprecedented plan to phase out stamp duty in South Australia by 2041 completely. It is indeed a bold policy that reflects the Liberal vision for a low-tax government, where home owners have the power over their own funds to activate the economy.

South Australian builders have welcomed this announcement, not surprisingly, claiming it will be a game changer in mobilising our property market, with its ability to free up properties owned by potential downsizers, and with aspiring home owners likewise indicating their strong support, as it makes the property ladder just that much easier to get onto.

If elected on 26 March next year, a Tarzia Liberal government will wean off this backward tax, first with immediate relief aimed at alleviating the housing crisis, followed by a systemic phase-out. It will begin by adjusting the brackets of stamp duty within five years, and within 15 years this tax will be completely abolished—no ifs, no ands, no buts.

Meanwhile, it will exempt first-home buyers from stamp duty on existing properties as we work to end this regressive and burdensome tax; that is, a first-home buyer will not pay any stamp duty at all on existing properties up to $1 million should the Tarzia government be elected in March. Stamp duty is a relic of the past. It belongs to an era when our economy was smaller, less mobile and less competitive. The Liberal Party wants to transform our state into a place where people are free to move for new jobs, to build families, to invest and to no longer be restricted in their choices simply because of an outdated tax.

By taking the initiative to eventually remove stamp duty in its entirety, we would send a strong signal to investors, both local and interstate, that South Australia is serious about growth and we are open for business. It will demonstrate that we are ready to modernise, ready to compete and ready to reward ambition rather than penalise it with a painful, onerous tax.

The enviable lifestyle many of us have become accustomed to in South Australia has sadly been at risk of becoming a distant memory for future generations because of the unaffordability of housing. Governments should not add to that. The opposition believes in a South Australia that rewards enterprise, encourages growth and creates opportunity. It is our strong view that abolishing stamp duty is a vital step towards achieving that goal.

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