Revenue SA reminded taxpayers, that transfers of ‘qualifying land‘ (non-residential or non-primary production land), were exempt from transfer duty, if executed on or after 1 July 2018.
This is significant duty reform, from South Australia, and is the effect of s105A(5) of the Stamp Duties Act 1923, which was inserted into this Act, in 2015, by s53 of the Statutes Amendment and Repeal (Budget 2015) Act 2015 (No 41 of 2015). ‘Ad valorem’ duty had been payable, in the order of 5% of the value of the land transferred.
This has been replaced, however, with ad valorem registration fees, payable to the Registrar-General, albeit a much lower rate ($280 + 0.825% of there ‘capital value’ of the qualifying land). This is based on purchase price or the value assessed by the Valuer-General, for the purposes of Stamp Duties Act 1923. . These changes to the registration fees were made by Real Property (Fees) Variation Regulations 2018, gazetted on 31 May 2018 (p2017). They vary the Real Property Regulations 2009. The 2018 Amending Regulations will come into operation, on 1 July 2018.
[SA AG’s Legislation Site: Duties Act, 2015 Amending Act, Real Ppty Regs; Revenue SA’s website: Qualifying Land; FJM; LTN 104, 1/6/18; Tax Month – June 2018]
Study questions (answers available)
- Is South Australia exempting transfers of certain land from duty?
- Is the exempted land residential and primary production land?
- Are the registration fees, that remain payable, a fixed amount for all transfers?
