Many residents in Southern Australia are asking this one simple question. Should we stay or should go? Statistics have shown that over 28,000 people moved states last year in Australia – and the trend is only set to continue over the coming years. South Australia was particularly affected with a net loss of 6000 people.
There are many factors which are contributing to the move, including better jobs, higher salaries and also property prices. This is despite efforts by the government in South Australia who have implemented the policy to retain people within the state. The measures have attempted to address employment, infrastructure and innovation.
However, according to REISA (Real Estate Institute of South Australia) there is one critical factor which the government have not look at – stamp duty. Officials claim that because the state does not suffer from the same rises in house prices as other states they are able to retain the stamp duty.
Victoria recently announced that it is set to cut stamp duty on properties up to the value of $600,000. While this may not be the primary reasons for the migration, it is certaintly a contributory factor. A spokesperson for REISA said 'We understand that property revenue is an important source of income for the government, but stamp duty is an ineffective tax and only serves to highlight the advantages that other states can offer.'
They insisted that they were not calling for stamp duty to be completely abolished but they were keen to bring the rates in line with other states. They also stated that they should be matching the benefits offered by other parts of the country state for state – especially in regards to young people and first-time buyers in the property market.