South Australia has decided not to follow NSW, Queensland and Victoria in imposing surcharges on foreign property investors as part of its state budget.
Daniel Gannon, executive director for South Australia at the Property Council of Australia, said the state now has another competitive advantage when it comes to property-based taxes.
“The message to investors is now very clear: if you want to pay lower taxes on property transactions, then invest in South Australia,” he said.
“Slapping counter-productive taxes on foreign investment is a great big risk for housing supply in our major capital cities.
“What we’re seeing in Queensland, Victoria and NSW is a race to the bottom on populist taxes that fail to address housing supply or improve affordability.”
As part of its state budget, the NSW government recently introduced a 4 per cent stamp duty surcharge for foreign buyers, while the Queensland government introduced a 3 per cent surcharge and Victoria increased its stamp duty tax from 3 per cent to 7 per cent.