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Let the race begin

19 Jun 15

The Real Estate Institute of South Australia (REISA) congratulates the State Government on its reform of business taxes in yesterday’s Budget.

In particular, REISA welcomes the acknowledgement of the South Australian Treasurer that stamp duty on business transfers was an ineffective tax which discouraged business activity.

Chief Executive Officer of REISA, Mr Greg Troughton said “Business owners and investors have a great reason to celebrate today.  The abolition of all transactional taxes for business by 2018 is a necessary step to encourage investment and open up the business corridor in this State”.

“I am also delighted that the stamp duty debate has now burst open from the starting gates and has commenced its inevitable journey towards the finishing line where the abolition of stamp duty on residential property is the gold medal”

“I am conscious of the fact that this is the first leg of a race that for many years has been bogged down in tax reform papers, government committees and endless talkfests - but it is a beginning” Mr Troughton said.

Despite the good news for South Australian business, there are still many laps to run for home purchasers and investors in residential property.

“Just as growth and prosperity in this State is tied to the commercial sector, we need to also recognise that an efficient and competitive regime for home purchase and investment in residential property is just as important”

“The further increase in the Emergency Services Levy is disappointing and - coupled with stamp duty and land tax - represents a real obstacle to the dream of home ownership in South Australia”

“I have said this many times before – what we need is wholesale tax reform.  We cannot merely have the replacement of one State real estate tax with another.  We cannot afford – as a State – to be locked in a financial prison where our principal source of income is derived from one industry” 

“We need to either increase the rate of GST or broaden its base – while of course protecting the most vulnerable in our community”

“I congratulate the State Government on its Budget yesterday in relation to business tax”

“Let the race begin”