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Stamp Duty explained in South Australia

Are you about to enter the real estate market and struggling with the idea of paying a substantial amount of money, on top of the purchase price, for stamp duty?

Stamp Duty explained in SA

Firstly, let me explain what stamp duty is. Stamp duty is a tax and is payable to the state government. As with other taxes, the funds are put back into the economy and used for health, emergency services, roads, transport, education and other public sectors.

All property transfers are subject to stamp duty that is based on the value of the land and any buildings or other improvements. If the value of the property is higher than the purchase price (the consideration), then the duty will be calculated on this amount. There are exemptions, concessions, rebates and reductions that may apply.

Exemptions:

Some exemptions may apply, such as, where there is a transfer to a beneficiary of the will of a deceased estate, or under certain matrimonial circumstances.  There is also an Off-the-Plan Concession for home buyers who are purchasing an off-the-plan apartment in South Australia until 30 June 2018. 

Qualifying Land:

By the 1 July 2018, stamp duty will be abolished on “qualifying land”, which is non-residential, non-primary production land (as defined under Section 71DC of the Stamp Duties Act 1923). Stamp duty on qualifying land has been reduced slowly over the last 3 years and currently there is a reduction of two-thirds on the regular duty that is payable.

Foreign Ownership Surcharge:

Whilst there are circumstances where the duty will be reduced, there are also surcharges that may apply. For example, if you are a foreign purchaser, and you acquire residential land in South Australia, you will be required to pay a surcharge. You can read more about the Foreign Ownership Surcharge here.

Stamp Duty Rates

The stamp duty rates for conveyances of land are shown below (but are always subject to many factors as contained in the Stamp Duties Act 1923).

Where value of the property conveyed Amount of Duty
Does not exceed $12,000 $1.00 for every $100 or part of $100
Exceeds $12,000 but not $30,000 $120 plus $2.00 for every $100 or part of $100 over $12,000
Exceeds $30,000 but not $50,000 $480 plus $3.00 for every $100 or part of $100 over $30,000
Exceeds $50,000 but not $100,000 $1,080 plus $3.50 for every $100 or part of $100 over $50,000
Exceeds $100,000 but not $200,000 $2,830 plus $4.00 for every $100 or part of $100 over $100,000
Exceeds $200,000 but not $250,000 $6,830 plus $4.25 for every $100 or part of $100 over $200,000
Exceeds $250,000 but not $300,000 $8,955 plus $4.75 for every $100 or part of $100 over $250,000
Exceeds $300,000 but not $500,000 $11,330 plus $5.00 for every $100 or part of $100 over $300,000
Exceeds $500,000 $21,330 plus $5.50 for every $100 or part of $100 over $500,000

The above chart is provided by Revenue SA and you can obtain more information here.

Your conveyancer will attend to all stamp duty requirements as part of the conveyancing process to provide a stress free experience for you! If you have any questions about your stamp duty obligations, contact us today for advice.

Lauren Robbins – Director/Registered Conveyancer