In a bold move to transform the property market, the South Australian opposition has unveiled a plan to eliminate stamp duty for homebuyers across the state.

This initiative aims to simplify home purchasing, but it has sparked concern among critics who question the financing of the proposal.

The Liberal Party’s strategy involves gradually phasing out this tax by the year 2041.

Opposition Leader Vincent Tarzia highlighted the drawbacks of stamp duty, stating, “We recognize it as an inefficient tax.”

He further explained, “It poses challenges for young individuals aiming to purchase their first home and complicates the process for seniors looking to downsize.”

However, the proposed policy has drawn mixed reactions, with questions raised about its financial viability.

Treasurer Tom Koutsantonis has been particularly critical, highlighting the $1.6 billion a year in revenue that stamp duty generates for the state.

“This is the equivalent amount of money as firing every police officer twice,” Koutsantonis said. 

“If your budget is cut by a third, can you deliver the same service?”

“If they can’t explain how they are going to pay for this, there will be cuts, severe cuts,” he added.

The opposition has insisted no new taxes will be raised to make up for the shortfall.

“There will be no new taxes under a Tarzia Liberal government,” the opposition leader said, adding that “we are not making any cuts to frontline services”. 

But exactly how the policy will be paid for is yet to be seen, with the Liberals saying that plan will come closer to next year’s election.