South Australia's mid-year budget review highlighted the state's financial dependence on people purchasing property, according to a statement from the Real Estate Institute of South Australia (REISA).
REISA has suggested that the state government should attempt to move to a broader tax base in order to undercut this reliance, after the budget review showed a shortfall in expected earnings.
Treasurer Jack Snelling pointed out when he published the review that the South Australian government had not been immune to the global drop-off in consumer spending and the uncertainty surrounding the future of the eurozone.
REISA President Greg Moulton argued that with property accounting for almost a third of the state's income, the need for change is clear as property tax revenue suffered in the current economic climate.
"As real estate professionals, we know the past year has been tough for homebuyers so it's no surprise to see the state's coffers feeling the pinch of lower sales volumes," he said.
Posted by Steve Douglas
