SA stamp duty abolition a green light for investment

SA stamp duty abolition a green light for investmentSouth Australia is the first state in the nation to abolish stamp duty on commercial property, a move the Property Council says will stimulate confidence and investment in the state.Handing down the 2015-2016 Budget last week, South Australian Treasurer Tom Koutsantonis (pictured) promised to phase out stamp duty on commercial property transactions over three years commencing on 1 July 2016. By 2018-19, the duty saving on a $1 million commercial property purchase will equate to $48,830. A $5 million investment will save $268,830 in stamp duty, while a $10 million transaction will save $543,830. According to the Property Council’s SA executive director, Daniel Gannon, abolishing stamp duty sends a strong signal to boards across the country, and gives “South Australia an instant and powerful, competitive advantage over other jurisdictions.”Property Council chief executive Ken Morrison says the South Australian Government has “taken the tax reform leadership mantle” and encouraged the other states and territories to follow its lead.”This is a significant job creation measure and a critical first step to broader stamp duty and tax reform,” Morrison says.South Australia’s property sector employs more than 168,000 people, represents almost 11 per cent of gross state product, and accounts for 42 per cent of state taxation revenue. The Property Council will continue to campaign for lower land tax rates and systemic change to land tax aggregation to make South Australia the most competitive place to invest.The Weatherill Government’s decision not to impose a tax on foreign investors has also been applauded by the property industry.”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 conveyancing stamp duty abolition, our state’s investment appeal is heading in the right direction,” Gannon concludes.