Changes to South Australian Stamp Duty legislation in 2015 have been a major investment iincentive for both businesses and investors with the value of assets no longer distorted by state taxes.
The main initiatives were as follows:
1. Stamp Duty on transfer of shares that are not listed on a recognised stock exchange was abolished
– This enables the shares of private companies to be transferred free of stamp duty, something that may be particularly helpful for estate planning, where shares are to be passed down to younger generations.
2. Stamp Duty on the transfer of Non-Real Property was abolished
3. Stamp Duty on Corporate Restructures has been abolished
4. A Stamp Duty Exemption was introduced for the transfer of a principal place of residence into a special disability trust
5. The scope of the Stamp Duty Exemption on inter-family farm transfers was expanded
6. The abolition of Stamp Duty on Commercial Property is to be phased in over three years from 1 July 2016
– The effect of this has been to enable the transfer of ownership of commercial properties to superannuation funds or risk free trusts, without the burden of stamp duty. This will result in more proceeds being available to the property owners on their retirement, rather than to the Tax Office.
A flow-on effect is increased investors interest in the purchase of commercial properties. But take note: when a property contract is signed (not the settlement date), is the significant date in this process. Seek professional advice to avoid falling foul of the legislation’s anti-avoidance provisions.
7. The Payroll Tax Rebate has been extended to payrolls less than or equal to $1.2million
8. Stamp Duty no longer applies to the transfers of fishing licences, taxi licences, gaming machine licences, business transfers including stock, goodwill, plant and equipment not fixed to land, receivables and intellectual property.
