Jenny Lee and Kevin Huynh, Corporate Tax Specialists, highlight the key tax announcements from the South Australian 2016-17 Budget.
The 2016-17 South Australian State Budget was handed down on 7 July and introduced the following changes to South Australian state taxes:
Stamp duty The 2016-17 budget reiterates the phased abolition of stamp duty on non-residential and non-primary production real property transfers, confirming the further one third reduction from 1 July 2017 and the eventual abolishment of the duty from 1 July 2018.
The 2016-17 Budget has extended the stamp duty concession for off-the-plan purchases of apartments to 30 June 2017. The eligibility criteria for the concession has also been expanded from the inner-metropolitan area to the whole of the state for eligible contracts entered into between now and 30 June 2017.
Under the current land tax provisions, in circumstances where an individual undertakes substantial renovations of their principal place of residence and is required to live in alternate accommodation, the property being renovated may trigger land tax if it is unoccupied as at midnight 30 June and the owner holds land that exceeds the value of the tax-free threshold.
The 2016-17 budget will amend the Land Tax Act 1936 to enable the land tax exemption for a “principal place of residence” to continue to be claimed for up to two land tax years where the residence is unoccupied while being substantially renovated or rebuilt.
The small business pay roll tax rebate introduced in the 2013-14 budget has been extended another four years to 2019-20. Employers with taxable payrolls of less than or equal to $1.2 million will receive a payroll tax saving that will enable them to pay an effective payroll tax rate of 2.50 percent as opposed to the statutory rate of 4.95 percent.
A wagering tax will be introduced at a rate of 15 percent on net wagering revenue received from persons located in South Australia by all Australian-based wagering operators from 1 July 2017. South Australia will be the first Australian jurisdiction to impose a wagering tax based on the place of consumption. The wagering tax will include, but is not limited to, bets on horse, harness and greyhound racing, bets on sports, such as AFL, cricket and soccer, and other contingencies