The latest South Australian budget was delivered on Wednesday, announcing new tax cuts and initiatives which will benefit Adelaide property investors and owners.
Land tax cuts
In a bid to encourage more investors into the state, the land-tax-free threshold for all investment properties will rise from $369,000 to $450,000. (This threshold refers to the land value only, not the property value).
Over 50,000 property investors will also benefit from nearly $100 million in land tax cuts as the Marshall Government lowers the land tax rate from 3.7% to 2.9% from July 1, 2020. This applies to land tax ownerships valued between the existing top threshold (currently $1.2 million) and $5 million.
Emergency Services Levy reductions
650,000 South Australian home owners are set to benefit from reductions in the Emergency Services Levy.
This Levy funds the provision of emergency services in South Australia and applies to all fixed property. This tax is calculated based on a home’s price.
Reductions in the Emergency Services Levy means South Australian home owners will share in a total estimated annual savings of $90 million for the 2019 financial year. This represents close $150 in extra savings per year for a median priced home.
$11.3 billion infrastructure boom
The property industry has welcomed news of over $11 billion in infrastructure spending, which will benefit the local property market for years to come.
Budget papers indicate $2.3 billion will be spent on roads infrastructure, $1.3 billion for education facilities, $1 billion for public transport, $854 million for health facilities, amongst many additional projects.
$100 million for renewable energy home solutions
South Australia is well known for leading the charge in renewable energy solutions. As part of the new State Budget, the Marshall Government also announced $100 million in grants for 40,000 homes as part of its innovative renewable energy storage scheme that will deliver cutting-edge home battery storage systems to the people of South Australia.
This forms part of the broader $184 million Energy Solution package which will see more and more locals enjoying renewable energy solutions at reliable and cost-effective rates.
The Budget forecast a surplus of close to $50 million for the 2019 financial year, with this figure expected to rise to over $100 million by the 2020 financial year.
Overall, the Budget has been widely regarded as good news for local home owners and property investors.
South Australia Property Council Executive Director Daniel Gannon states: “The message coming out of this Budget is very clear – it’s about positive new infrastructure spending without punitive new taxes.”
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