Foreign investor taxes in SA ruled out

The Property Council of Australia’s call for no taxes on foreign investors has been heeded, with the State Government ruling out extra charges ahead of tomorrow’s State Budget.

Today’s announcement means South Australia will not be joining New South Wales, Queensland and Victoria in imposing surcharges on foreign investment.

SA Executive Director of the Property Council Daniel Gannon said South Australia 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,” said Mr Gannon.

“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.

“In shaping a thriving future for South Australia, we need to create a business environment that turns our state into a hub of innovation and investment. Lowering our tax regime and cutting red tape will help attract investment and lift productivity.

“To create jobs and for South Australia to thrive, we need to build the best tax environment for business.

“The State Government’s commercial stamp duty changes, once phased in by July 2018, will make our economy one of the most competitive places in Australia to do business.

“That will create the boost to business confidence that we need and send a strong message to foreign investors.”

Please see below statistics about the importance of property to the South Australian economy:

  • Property is South Australia’s largest private sector employer and biggest industry 
  • It accounts for 10.8% of the state’s economic activity (or $10.5 billion) 
  • It builds prosperity by paying $4.4 billion in wages and salaries – one in six people draw their wage directly or indirectly from property
  • One million South Australians have a stake in property through their super funds 
  • Property is the largest single industry contributor paying 56.6% of state taxes, local government rates, fees and charges

Media contact:
Daniel Gannon |E [email protected]