Property Council of Australia calls for South Australia land tax and stamp duty reform

Land tax is on the Property Council of Australia’s radar, as they ask the South Australian government to use the upcoming state budget to look towards a lower taxing, more efficient state.

Property Council acting executive director, Lino Iacomella, said that an urgent tax review is necessary to make the system fairer and more effective.

“This includes, broadening the land tax base and reducing the top rate of land tax, which is the highest in the country,” said Iacomella.

“The budget's difficult fiscal position is clear and with the government's election commitments yet to be factored in to the forward estimates, there is an urgent need to drive savings and initiate reform.

“Before committing to more spending, it is vital that the government initiates a line-by-line review of all existing state programs and projects,” he said.

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Growth orientated reforms should be the focus, the Property Council believes, including removing outdated regulations, freeing up trading hours and creating an independent infrastructure agency to prioritise key projects.

“South Australia also needs to play a leadership role in the emerging national tax reform agenda. It must engage with other states and the federal government to maximise opportunities to replace ugly state taxes like stamp duties with more sustainable and equitable revenue measures,” said Iacomella.

The Real Estate Institute of New South Wales has also been asking for a stamp duty and land tax cut, arguing for a broader-based system.