South Australia Outlook Changing Market Conditions South Australian members are divided on the expected changes in interest rates for the remainder of 2011, with half of all SA respondents thinking they would increase slightly and half thinking they would remain unchanged. The Governmentâ€™s move to introduce a carbon tax is not supported by First National members, primarily as a result of concerns about the impact on confidence, the economy, saleability of existing housing stock, and values. However, more customers will seek energy efficient features when looking to buy a new home, due to the rising household energy costs and the challenge of maintaining a healthy home budget as energy becomes more expensive, and energy efficiency takes on more significance in the buying decision. A carbon tax will also potentially decrease demand for homes that are not currently adapted for energy efficiency. It was considered that Stamp Duty should be abolished altogether, as it only serves to stifle the proper ty market. Should the Government feel the need to replace the duty with another type of tax, Land Tax was seen as a fairer system which does not penalise home buyers and investors. It was felt that any talk of abolishing negative gearing should cease immediately.
32 First National Real Estate 2011 Property Market Outlook