Stamp duty abolition fast-track to growth

Stamp duty abolition fast-track to growthThe State’s largest private sector industry has today welcomed the Government’s decision to accelerate in part the abolition of commercial conveyance stamp duties, labelling it a fast-track to growth.The Property Council of Australia today commended the State Government on this decision, which will stimulate local, interstate and foreign investment interest in South Australia as an investment destination.”Accelerating the abolition of stamp duty on non-residential property transfers sends a powerful message to the business community here in South Australia, interstate and overseas,” said SA Executive Director Daniel Gannon.”Stamp duty on a $5 million property represents $268,830. This announcement drops that expense by one third, representing almost $90,000 in savings for that $5 million property.”The removal of this deadweight business tax is a green light for investment and a positive platform for investment hunting, and will also accelerate transaction activity across the state.”Fewer taxes mean greater prospects of job creation and economic stimulation, particularly in the wake of recent worrying jobs data.”Boards across the country will be sitting up and taking another look at South Australia as a result of the decision to not only abolish stamp duty, but to bring it forward.”Bringing forward the reduction in stamp duty for commercial transactions gives South Australia an instant and powerful, competitive advantage over other jurisdictions.”It is a significant job creation measure and a critical first step to broader stamp duty and tax reform.”Removing stamp duty completely will require the cooperation of all governments and we urge them to use the current national discussion as the vehicle for this all-important change.”Mr Gannon said South Australia’s property sector employs more than 168,000 people, represents almost 11 per cent of GSP, and accounts for 56.6 per cent of state and local taxation revenue.