ATTENTION interstate Boards SA stamp duty abolition means green light for investment

ATTENTION interstate Boards: SA stamp duty abolition means green light for investmentThe peak body for Australia’s $680 billion property industry has one clear message for interstate and overseas investors – turn your transaction attention to South Australia.The Property Council of Australia today reiterated its support for injecting confidence into South Australia’s property market, which will encourage local, interstate and possibly foreign investment stimulation. “Taking an axe to stamp duty on non-residential property transfers sends a strong message of confidence to South Australia’s small- and medium-sized enterprises,” said SA Executive Director Daniel Gannon. “But importantly, commercial stamp duty abolition will ensure Boards across the country will sit up and pay attention to our state’s property market. “Abolishing conveyancing stamp duty for commercial transactions gives South Australia an instant and powerful, competitive advantage over other jurisdictions.”Stamp duty on commercial property transactions will be phased out over three years commencing on 1 July 2016 until its complete abolition on 1 July 2018, which represents an historic win for the sector and for job creation in South Australia. “It also means that South Australia as at 1 July 2016 will be the most competitive state in the nation when it comes to commercial stamp duty. By 2018, non-residential stamp duty will be abolished entirely. “The savings this presents for commercial investment are immense. As an example, the stamp duty saving on a $1 million commercial property purchase equates to $48,830, while on a $5 million investment it presents a $268,830 saving. A $10 million transaction after 1 July 2018 will see a saving of $543,830. Mr Gannon said South Australia’s property sector employs more than 168,000 people, represents almost 11 per cent of GSP, and accounts for 42 per cent of state taxation revenue. “Taxes are meant to lean lightly on our economy, not act as a barrier to activity, transaction, job creation and prosperity, but that’s exactly what stamp duty does,” he said. “As it stands, our state does not boast a ‘top end of town,’ but this decision might encourage just that – and this means jobs, prosperity and strong local communities.” “In more good news for the property sector, the State Government has heeded the Property Council of Australia’s calls and has not imposed a tax on foreign investors, which is another positive outcome for South Australia’s attractiveness as an investment destination. “South Australia is in an investment competition with the rest of the country and globally when it comes to attracting foreign investors, and when combined with commercial conveyance stamp duty abolition, our state’s investment appeal is heading in the right direction.”