Daniel Gannon, executive director for South Australia at the Property Council of Australia, said the state now has another competitive advantage when it comes to property-based taxes.
“The message to investors is now very clear: if you want to pay lower taxes on property transactions, then invest in South Australia,” he said.
“Slapping counter-productive taxes on foreign investment is a great big risk for housing supply in our major capital cities.
“What we’re seeing in Queensland, Victoria and NSW is a race to the bottom on populist taxes that fail to address housing supply or improve affordability.”
As part of its state budget, the NSW government recently introduced a 4 per cent stamp duty surcharge for foreign buyers, while the Queensland government introduced a 3 per cent surcharge and Victoria increased its stamp duty tax from 3 per cent to 7 per cent.
[Related: Foreign buyer tax 'playing on xenophobia']