Vincent Tarzia must release the economic analysis he claims as the basis for the Liberals' economically reckless housing policy or admit it simply does not stack up.
On ABC Radio Adelaide yesterday, the State Opposition Leader referenced his "own economic analysis", when pushed on whether his plan to axe stamp duty for first home buyers on existing homes would drive up house prices
This is despite the independent Australian Government Productivity Commission's analysis the policy would make "house prices more expensive by increasing demand":
"The additional demand, if not accompanied by an increase in the number of homes available, places pressure on house prices and reduces housing affordability. It is not typically home buyers who benefit from the assistance, it is the sellers who receive a higher sale price."
Australian Government Productivity Commission - The National Housing and Homelessness Agreement – Study Report 2022 (page 32)
Yesterday Mr Tarzia was unable to outline how his policy would boost supply of additional homes.
The Malinauskas Labor Government has abolished stamp duty for first home buyers who buy or build a new property, with the view to boost housing supply. In the past two years, the move has seen more than 4000 first homebuyers benefit from paying no stamp duty – with the same number of new homes being added to supply.
As put by Stephen Mullighan
This is a Liberal policy for higher house prices and higher debt – cutting stamp duty on existing homes only benefits the sellers as house prices are driven up.
This policy will also cost the budget $130m each year – or over $500m over the next four years – and Vincent Tarzia can't explain how he would pay for it.
Vincent Tarzia claims he has his own economic analysis that disproves the Productivity Commission's independent analysis – so today he should release it.
