The 2016-17 SA Budget was handed down on Thursday 7.7.2016. The SA Treasurer, Tom Koutsantonis, announced a budget surplus. Mr Koutsantonis also announced the following tax proposals:

  • extending the small business payroll tax rebate – The small business payroll tax rebate introduced in the 2013-14 Budget will be extended for a further 4 years to 2019-20.
  • extending and expanding the off-the-plan apartment stamp duty concession – The current stamp duty concession for purchases of off-the-plan apartments that was due to expire on 30 June 2016 has been extended for a further 12 months. The eligibility area will also be expanded from the inner-metropolitan area to the whole of the state for eligible contracts entered into between 20 June 2016 and 30 June 2017.
  • introducing a wagering tax – A 15% wagering tax will be introduced on net wagering revenue received from persons located in South Australia by all Australian based wagering operators from 1 July 2017.
  • expanding the principal place of residence land tax exemption – The Land Tax Act 1936 (SA) will be amended to allow a PPR land tax exemption to continue to be claimed for up to 2 land tax years where the residence is unoccupied while being substantially renovated or rebuilt.
  • expanding the land tax exemption for sporting and racing associations – The land tax exemption for sporting and racing associations will be expanded to include all non-residential and non-vacant land owned by an association. The exemption will apply to land held from 30 June 2016. Sporting and racing clubs will also be eligible for ex-gratia relief for 2015-16 land tax liabilities.
  • an amendment to the requirement to 50% of the tax in dispute before appealing (in s93(1) of the Taxation Administration Act 1996 (SA)) so that it is clear that this only 50% of the primary tax in dispute and doesn’t include penalties or interest.

Budget Bill introduced – RevenueSA has noted that legislative amendments to implement the above proposals (except the extension of the small business payroll tax rebate which is an administrative scheme) are contained in the Statutes Amendment (Budget 2016) Bill 2016 (SA) which it said was introduced into the SA Parliament on Thur 7.7.2016 also.

Further information – RevenueSA has released Information Circular 93 (State Budget 2016-17) which provides an overview of the Budget proposals. It has also released Information Circular 94 (State Budget 2016-17 Land Tax Amendments).

[LTN 129, 7/7/16]