The Property Council has hailed stamp duty reform announced as part of the 2012-13 South Australian Budget as watershed reforms that will give inner-city living a shot in the arm and act as a heart-starter for the struggling construction industry.
“I can’t overstate the significance of today’s announcement; what the Treasurer has delivered, in these fraught economic times, is a clear signal that they are willing to act for consumers, for the construction sector and for the state” said Property Council of Australia (SA Division) Executive Director Nathan Paine.
“Demand for apartment and multi-level residential living products has been pent up by tax treatments that disadvantaged these products against house and land packages,” Mr Paine said.
“By eliminating this disadvantage, the Treasurer has put apartments on a level playing field with house and land packages, which will unleash this demand.
“I have no doubt this will result in much greater uptake of apartment living in the city, helping the Government and Adelaide City Council achieve their targets for inner-city population.
“It will also vastly improve business conditions for new potential investors in new apartment products in the city.
“The benefits of this are two-fold: firstly, it will further bolster efforts to achieve inner-city population targets. Secondly, it will act as a much-needed stimulus to the construction sector.”
The Property Council has obtained data that shows the property industry is South Australia’s largest private sector industry, adding $8.1 billion to the state’s economy in 2010-11 – 10 per cent of the state’s gross economic product. Of even greater importance, the property sector is also the state’s second largest employer, after the public sector, employing 73,000 South Australians.
“Today’s announcement will save South Australian jobs and give a jump-start to the state’s biggest private industry,” Mr Paine said.
“Combined with yesterday’s announcement of more assistance for first home buyers, the State Government has taken great strides to helping South Australians own the kind of home they want.
“They now have a real choice of housing products, and this will help more South Australians into home ownership.
“We applaud the State Government – in particular Premier Weatherill and Treasurer Jack Snelling – for this bold and much-needed reform.”