News Corp Australia Network

New research reveals stamp duty costs Adelaide home buyers 4.4 times more than it did in the 1980s. Picture: supplied.

---

Stamp duty costs Adelaide home buyers four times more than it did a generation ago, new figures reveal.

Joint research by PropTrack and e61 Institute found Adelaide owner-occupier buyers must save $32,300 for stamp duty to purchase a median-priced home of around $699,000 – that’s the equivalent of 5.1 months of full-time income and is 4.4 times higher than in the early-to-mid 1980s.

Stamp duty for owner-occupiers in the 1980s was equivalent to $1500, or 1.2 months of full-time post-tax income.

PropTrack senior economist Angus Moore said the large upfront cost for homebuyers had become a burden.

PropTrack senior economist Angus Moore. Picture: supplied.

---

“The rise has largely been incidental, rather than an intentional increase in tax rates,” he said.

“Home prices have grown faster than incomes, and stamp duty brackets have not kept up with growing prices.

“This increase matters.

“According to a McKinnon poll, housing costs – of which stamp duty is an important part – have caused one quarter of Australians under 40 to delay changing jobs, caused one-in-five in their 30s to push back having children, and prevented people of all ages from moving home.

“Stamp duty is an inefficient tax because it discourages people from moving to homes that suit them.”

MORE NEWS

38 homes earmarked for huge site following jaw-dropping sale

Beloved artist hub could face wrecking ball following sale

Eerie Adelaide home sells under the hammer for shock price

Mr Moore said stamp duty reform was “critically needed” to allow the market to operate more efficiently.

In SA, stamp duty was recently abolished for eligible first-home buyers purchasing a new residence valued up to $650,000 or vacant land to build valued up to $400,000.

Real Estate Institute of SA chief executive Andrea Heading said it was a huge barrier for many prospective buyers, particularly those just getting into the market.

REISA chief executive Andrea Heading. Picture: supplied.

---

She acknowledged stamp duty was a tax the government relied on so it couldn’t be completely abolished as the money would need to come from elsewhere.

However, she said they would like to see it abolished for first-home buyers on all properties.

“It makes it harder to buy full stop, particularly if you’re a first-home buyer,” she said.

“The reason why so many people rent is because it’s more affordable if they can’t save for stamp duty.

“We’d love to see it abolished for that first-home buyer market … or significantly reduce the amount that you have to pay.”

However, Treasurer Stephen Mullighan said scrapping stamp duty for all homes, including existing dwellings, risked pushing prices up further and benefiting the vendor rather than the purchaser.

He said housing was a top priority for the state government.

Treasurer of South Australia Stephen Mullighan. Picture: NCA NewsWire/Morgan Sette.

---

“The June State Budget included a comprehensive $474.7 million housing package, which supports the delivery of 3600 new homes over five years and reduces the cost of housing for around a further 14,000 new homes, including scrapping stamp duty for eligible first home buyers building a new home,” he said.

“Importantly, because it’s for new builds we are also adding much needed supply to the market.”

Mr Mullighan said the State Government had also retained its first home owner grant, increasing its property value cap from $575,000 to $650,000.

“These reforms will provide up to $45,000 in relief for eligible first-home buyers,” he said.