Property Council responds to 2026 SA State Budget
The Property Council of Australia has welcomed the State Government’s commitment to delivering key election promises in the 2026-27 State Budget, including several measures strongly supported by the property sector, while cautioning that South Australia cannot afford to lose momentum on reforms needed to drive investment, productivity and economic growth.
Property Council SA Executive Director Bruce Djite said the Budget largely reflects the implementation of commitments made at the recent State Election, including the government’s $500 million apartment fast-track fund and stamp duty incentives designed to encourage rightsizing and development of new housing. “These are initiatives the Property Council strongly advocated for through our Ready, Set, Grow election platform, and we welcome the government moving quickly to fund these commitments,” Mr Djite said. “The apartment underwrite scheme has the potential to unlock projects that would otherwise remain stalled, while stamp duty relief for downsizers will help free up established housing stock and improve mobility throughout the market. “These measures recognise that increasing housing supply requires governments to partner with industry and pull multiple policy levers simultaneously.”
Mr Djite said the Budget also reflects the challenging fiscal environment facing South Australia, with state debt continuing to rise significantly over the forward estimates. “While governments must continue investing in the infrastructure, health, education and services necessitated by a growing state, the reality is that debt levels are increasing and fiscal discipline will be critical in the years ahead,” he said. “In that context, we welcome the Treasurer’s recent announcement of a partial public sector hiring freeze and red tape reduction as sensible initiatives.
This demonstrates a willingness to tighten the belt and ensure the public sector does not perpetually compete with the private sector for talent. It also reflects that government acknowledges that it is simply too hard and complex for business to operate efficiently, and by reducing red tape there are significant productivity gains to be made. “A leaner and more efficient public service not only helps manage the state’s finances but also reduces competition for workers in a labour market where many private sector employers continue to face significant workforce shortages.”
Mr Djite noted that the property sector remains one of South Australia’s largest taxpayers and a critical contributor to the state’s revenue base through stamp duty, land tax and other propertyrelated charges. Indeed, this budget sees an 11.2 per cent increase in total property taxes from $1,121.7m in 2024-25 to $1,247.3m, and stamp duties on financial and capital transactions reflects an 11.2% increase, from $1,604.4m in 2024-25 to $1,783.7m. “Property continues to do much of the heavy lifting when it comes to funding government services and infrastructure,” he said. “The State’s reliance on property taxation reinforces the importance of maintaining settings that encourage investment, development and economic activity rather than discouraging it. “When the property sector succeeds, jobs are created the economy grows and communities’ benefit.” While welcoming the delivery of election commitments, the Property Council said further action is required to address South Australia’s long-term challenges.
The Property Council reiterated its calls for:
- Continued measures to attract private capital into urban renewal and commercial development projects
- Investment in enabling infrastructure to unlock growth and employment lands • Further planning system reforms that improve speed, certainty and efficiency
- Support for modern methods of construction and productivity-enhancing reforms
Tax settings that encourage investment.
“South Australia has strong momentum and significant opportunities ahead,” Mr Djite said. “The challenge now is ensuring we continue creating the conditions for private investment, housing delivery and job creation while managing the state’s finances responsibly. “While this Budget delivers important election commitments. The next step is ensuring South Australia remains an attractive place to invest, build and grow.”
