Stamp Duty in South Australia - Discussion Paper
Stamp duty on the transfer of real property (land) within South Australia is a tax payable to the State
Government when a property is transferred. The amount payable is based on the value of the land,
including improvements, and in most instances the purchaser will be responsible for its payment.
The payment of stamp duty is a legal requirement under the Stamp Duty Act 1923 (the Act) and must
be paid within 30 days of settlement of the property. The payment is due at the time the purchaser
arranges stamping and then lodges the documentation for registration at the Land Titles Office.
While all transfers of land or sales of property attract a duty there are a number of concessions or
exemptions that apply. Such concessions include buying off-the-plan apartments which meet certain
criteria or exemptions for the transfer from an estate of a deceased person to a beneficiary under a
will.
As stamp duty is not applied by the Federal Government the amount levied against real property
fluctuates between each State and Territory. A copy of the stamp duty rates across Australia is
included in Appendix 1. Currently all States and Territories apply stamp duty to real property.
However, the ACT has undergone a major reform of the taxation system and will be abolishing stamp
duty through a 20 year phased process.
Below is a table comparing the cost of stamp duty across all States and Territories for various housing
process. While some States provide concessions for first home owners, these are not taken into
consideration.
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New
South
Wales
Northern
Territory
South
Australia
Tasmania
Victoria
Queensla
nd
Western
Australia
$300,000
$400,000
$500,000
$750,000
$1,000,000
$5,000,000
State or Territory
ACT
Property
Value
$8,100
$12,600
$17,100
$29,600
$45,850
$275,000
$8,990
$13,490
$17,990
$29,240
$40,490
$260,490
$10,414
$16,514
$23,929
$37,125
$49,500
$272,500
$11,330
$16,330
$21,330
$35,080
$48,830
$268,830
$9,935
$13,998
$18,248
$28,935
$40,185
$305,613
$11,370
$16,370
$21,970
$40,070
$55,000
$275,000
$3,000
$5,250
$8,750
$19,600
$31,000
$241,000
$8,835
$13,015
$17,765
$29,741
$42,616
$241,000
Within South Australia stamp duty is the State Government's second biggest state-raised source of
revenue at an estimated $805 million this financial year. Volatility in sales makes budget planning
difficult.
In September 2012 the Parliament of South Australia - Economic and Finance Committee resolved to
inquire into and report on the South Australian taxation system. This review is specific to the taxes
and levies available to State and Local Governments and the sustainability of these taxes. An interim
report was tabled in November 2013 with overwhelming recommendations from witnesses calling
for change to property taxation.
It is understood that neither the Labour Government nor Liberals support the introduction of a land
tax at this point in time.
Australia's Future Tax Review System
The Australia's Future Tax Review, also known as the Henry Tax Review, was established in 2008 by
the Rudd Government to examine Australia's tax and transfer system, including states taxes and
make recommendations to position Australia to deal with the demographic, social, economic and
environmental challenges of the 21st century.
As part of this review the effectiveness of stamp duty was reviewed. It was stated that stamp duty is
a highly volatile, inequitable and highly inefficient tax on land and should be replaced with a more
efficient means of raising revenue. The application of stamp duty discourages transactions of
commercial and residential property and is also inequitable as people who need to move more
frequently bear more tax irrespective of their income or wealth. By removing stamp duty housing
affordability would also improve. The Review states that stamp duty on conveyances is ultimately
inconsistent with the needs of a modern tax system and should be replaced with a more consistent
and equitable taxation system.
Within the Henry Tax Review land tax is provided as an alternative to stamp duty. Land tax, like
Council rates, would be a charge on land based on the value of the given property so that the tax
does not discriminate between different owners or uses of land. A tax-free threshold based on the
value of the land could be set so there was no tax liability on most agricultural and low-value land. 1
Land tax is viewed as a more stable source of revenue for States as it is not tied to the volatility of the
real estate market. Additionally, it is one of the most efficient means of raising revenue when
applied uniformly across a broad base. 2
Currently no state applies a land tax to the primary place of residence. However, the Australian
Capital Territory is undertaking a phased in approach of land tax which is expected to be fully
introduced over the next 20 years.
1
Chapter 6.2 Australia's Future Tax System
http://www.taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/publications/papers/Final_R
eport_Part_1/chapter_6.htm
2 Chapter 6.2 Australia's Future Tax System
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Appendix 1. Stamp duty rates across Australia
South Australia
Where value of the
property conveyed
Rate
<$12,000
$1.00 for every $100 or part of $100
>$12,000 - $30,000
$120 plus $2.00 for every $100 or part of $100 over $12,000
>$30,000 - $50,000
$480 plus $3.00 for every $100 or part of $100 over $30,000
>$50,000 - $100,000
$1,080 plus $3.50 for every $100 or part of $100 over $50,000
>$100,000 - $200,000
$2,830 plus $4.00 for every $100 or part of $100 over $100,000
>$200,000 - $250,000
$6,830 plus $4.25 for every $100 or part of $100 over $200,000
>$250,000 - $300,000
$8,955 plus $4.75 for every $100 or part of $100 over $250,000
>$300,000 - $500,000
$11,330 plus $5.00 for every $100 or part of $100 over $300,000
>$500,000
$21,330 plus $5.50 for every $100 or part of $100 over $500,000
New South Wales
Where value of the
property conveyed
Rate
<$14,000
$1.25 for every $100 or part of the dutiable value
$14,001 - $30,000
$175 plus $1.50for every $100 or part, by which the dutiable value
exceeds $14,000
$30,001 - $80,000
$415 plus $1.75 for every $100 or part, by which the dutiable value
exceeds $30,000
$80,001 - $300,000
$1,290 plus 3.50 for every $100 or part, by which the dutiable value
exceeds $80,000
$300,001 - $1million
$8,990 plus $4.50 for every $100 or part, by which the dutiable value
exceeds $300,000
>$1m
$40,490 plus $5.50for every $100 or part, by which the dutiable value
exceeds $1,000,000
>$3m
$150,490 plus $7.00 for every $100 or part, by which the dutiable value
of the residential property exceeds $3,000,000
In NSW land tax does not apply to your principle place of residence.
Victoria
Where value of the
property conveyed
< $25,000
> $25,000 - $130,000
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Rate
1.4 per cent of the dutiable value of the property
$350 plus 2.4 per cent of the dutiable value in excess of $25,000
> $130,000 - $960,000
> $960,000
$2,870 plus 6 per cent of the dutiable value in excess of $130,000
5.5 per cent of the dutiable value
In Victoria land tax does not apply to your principle place of residence.
Tasmania
Where value of the
property conveyed
$1 - $1,300
$1,300 - $25,000
$25,000 - $75,000
$75,000 - $200,000
$200,000 - $375,000
$375,000 - $725,000
$725,000 and above
Rate
$20
$20 plus $1.75 for every $100, or part, by which the dutiable value
exceeds $1,300
$435 plus $2.25 for every $100, or part, by which the dutiable value
exceeds $25,000
$1,560 plus $3.50 for every $100, or part, by which the dutiable value
exceeds $75,000
$5,935 plus $4.00 for every $100, or part, by which the dutiable value
exceeds $200,000
$12,935 plus $4.25 for every $100, or part, by which the dutiable value
exceeds $375,000
$27,810 plus $4.50 for every $100, or part, by which the dutiable value
exceeds $725,000
In Tasmania land tax does not apply to your principle place of residence.
Northern Territory
Where the dutiable value does not exceed $525,000 in accordance with the following formula:
D = (0.06571441 x V2) + 15V
where D = the duty payable in $, and
V = the dutiable value /1000
From 1 July 2011, where the dutiable value exceeds $525,000, but is less than $3 million, 4.95
percent of that amount
From 1 July 2011, there the dutiable value is $3 million or more, 5.45 percent of that amount
No land tax is charged in the Northern Territory.
Queensland
Where value of the
property conveyed
Up to $5,000
$5,000 to $75,000
$75,000 to $540,000
$540,000 to $1,000,000
More than $1,000,000
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Rate
Nil
$1.50 for each $100, or part of $100, by which the dutiable value is
more than $5,000
$1,050 plus $3.50 for each $100, or part of $100, by which the dutiable
value is more than $75,000
$17,325 plus $4.50 for each $100, or part of $100, by which the
dutiable value is more than $540,000
$38,025 plus $5.75 for each $100, or part of $100, by which the
dutiable value is more than $1,000,000
In Queensland land tax does not apply to your principle place of residence.
ACT
Where value of the
property conveyed
up to $200,000
$200,001 to $300,000
Rate
$20 or $2.20 per $100 or part thereof, whichever is greater
$4,400 plus $3.70 per $100 or part thereof by which the value exceeds
$200,000
$300,001 to $500,000
$8,100 plus $4.50 per $100 or part thereof by which the value exceeds
$300,000
$500,001 to $750,000
$17,100 plus $5.00 per $100 or part thereof by which the value
exceeds $500,000
$750,001 to $1,000,000
$29,600 plus $6.50 per $100 or part thereof by which the value
exceeds $750,000
$1,000,001 to $1,650,000
$45,850 plus $7.00 per $100 or part thereof by which the value
exceeds $1,000,000
$1,650,001 and over
A flat rate of $5.50 per $100 applied to the total transaction value
In the ACT land tax is currently paid on rental properties. Stamp duty will be phased out over 20
years.
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