Big ideas for South Australia’s future
As South Australians head to the polls on 17 March, the state’s future economic prosperity hinges on its largest industry. And that’s property, says the Property Council’s executive director Daniel Gannon.
“The property industry generates 10.8 per cent of the state’s economic activity and employs 78,000 people. In fact, one in five South Australians draw their wages from property directly or indirectly,” Gannon explains.
“With the right tax and regulatory settings, policy-makers can harness the potential of the property industry to boost the economy and improve South Australia as a place to invest.”
South Australia attracts just two per cent of international investment in Australian commercial property.
“We need to scrap the populist foreign investor tax to grow our share of the nation’s foreign investment and send the right message to investors,” Gannon says.
As the largest single industry contributor to the state government’s coffers, property generates $4 billion, or 58.6 per cent of total state and local government revenue, each year.
Gannon says the state government’s “anti-competitive land tax regime” needs to be overhauled.
“Taxes on the places we live and work are taxes on jobs and business. Our state’s future economic prosperity hinges on encouraging more people to live and work in South Australia.”
“The elected government must take “urgent measures to sustainably grow the state’s population”. A target of two million people by 2026 represents two terms of government following the state election, he says.
“In 2017, Victoria grew by more people after 26 days than South Australia added in the entire year.”
The state also needs a “compelling vision” for its cities.
“Without doubt, we need to take the politics out of infrastructure decision-making and establish an independent infrastructure body, Building South Australia,” Gannon adds.
City Deals can unlock investment and foster a closer partnership with the federal government, while council amalgamations can reduce red tape, streamline planning processes, and return efficiencies and savings to local communities.
Also high on the Property Council’s wish list is a Company Headquarters Taskforce which would attract more companies to Adelaide and fill vacant commercial office space.
“We should adopt Deloitte’s proposal to establish the South Australian Investment Corporation to grow our financial services sector and keep expertise in South Australia,” Gannon adds.
Many of the ‘big idea’ policy proposals put forward as part of this platform could be funded out of existing revenue, Gannon explains.
“The privatisation of the Lands Titles Office was originally expected to raise $400 million, but has instead netted $1.6 billion. This remaining $1.2 billion can be used to fund important policies that will drive investment in South Australia.”