Hard hats and steel caps for infrastructure workers
The Property Council of Australia has described the State Budget as an infrastructure budget that will put hard hats and steel caps on workers now and into the future.
SA Executive Director of the Property Council Daniel Gannon said the State Government has adopted several key Property Council policy initiatives.
“The message coming out of this Budget is very clear – it’s about positive new infrastructure spending without punitive new taxes,” said Mr Gannon.
“This is a blueprint that will put hard hats and steel caps on workers now and into the future with a massive $11.3 billion in infrastructure spending.”
“If you’re a chippie, sparkie, plumber, landscaper, architect, engineer or conveyancer, the infrastructure investment made through this Budget is welcome news.
“Community infrastructure, the old RAH site, innovation precincts, art galleries and other budgeted projects will require trades people and professionals to continue to build a modern South Australia.
“Long overdue funding towards the establishment of Infrastructure SA has finally been ear marked, which will help deliver productive infrastructure of the future.
“When it comes to taxes, this is a Budget that is more carrot than stick with long overdue reforms to land tax, payroll tax and the Emergency Services Levy.
“While there is an urgent need to further reform land tax in South Australia – which is the country’s most anti-competitive – the Government has committed almost $100 million to increase thresholds and create a new marginal tax rate over a two-year period.
“This is good news for mum and dad investors with 8,000 South Australians no longer paying land tax.
“There are no nasty tax surprises like those from previous years, including car park and state bank taxes which if implemented would have taken a sledgehammer to the state’s investment environment.
“In terms of the foreign investor tax imposed by the former State Government, this remains an impost that will continue to discourage investors from looking at South Australia.
“This means that South Australia – along with New South Wales, Queensland, Victoria and Western Australia – remains a jurisdiction that has chosen to impose surcharges on foreign investment.
WHAT’S NOT IN THE BUDGET
“It’s disappointing that stamp duty concessions for off-the-plan apartments have been discontinued.
“Budget stimulus measures like these are strongly welcomed by developers, investors and particularly first home buyers at a time when affordability is stretching out of reach.
“There remains ongoing uncertainty around the Government’s statewide revaluation program, which looks set to continue under the auspices of the Valuer-General.
“As a result of this process, property values in South Australia are expected to rise and, subsequently, increase the tax liability of those landowners affected. This will result in an increase in the overall amount of land tax collected by the government – and it’s expected to be significant.
“If valuations increase drastically without a corresponding decrease in land tax rates to offset the pain, the livelihoods of many property owners will be affected because owners won’t be able to afford them.
ECONOMIC SIGNIFICANCE OF THE PROPERTY SECTOR
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 billion in wages and salaries – one in five 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 58.6% of state taxes, local government rates, fees and charges
Media contact: Daniel Gannon | E [email protected]