Opposition’s plan to increase house prices

Vincent Tarzia and the State Opposition have revealed their plan to increase house prices in South Australia and add $130 million to the State’s debt every year with a policy slammed by independent analysts.

The cost of the Liberals reckless plan to scrap stamp duty for first home buyers would cost approximately $130 million per annum.

Not only will this increase State debt, but independent analysts state the policy will result in higher house prices.

“… the assistance makes house prices more expensive by increasing demand.”

“The additional demand, if not accompanied by an increase in the number of homes available, places pressure on house prices and reduces housing affordability. It is not typically home buyers who benefit from the assistance, it is the sellers who receive a higher sale price.”

Australian Government Productivity Commission - The National Housing and Homelessness Agreement – Study Report 2022 (page 32)

The Malinauskas Labor Government has abolished stamp duty for first home buyers who buy or build a new property with the careful policy intent on increasing housing supply.

Monthly building approvals in South Australia are now 42.3 per cent higher than at the 2022 state election and up 28.8 per cent over the past year.

Since coming to government, the Malinauskas Labor Government has committed almost $3.2 billion to boost public and social housing, release land, build infrastructure and cut taxes — all with the aim of increasing supply and improving affordability.

Quotes

Attributable to Stephen Mullighan

This is a reckless policy from a desperate Vincent Tarzia, which would be to the detriment of first home buyers.
At the same time they complain about state debt, the Opposition wants to waste $130 million every year on a policy that will increase the cost of housing for South Australians.

The Malinauskas Labor Government has implemented a policy designed to incentivise new housing which will boost supply and help young South Australians buy a new home.

Vincent Tarzia is out of his depth on economic and financial issues and doesn’t understand the difference between demand side economics and supply side economics.