What is stamp duty?
Levies and taxes are a standard aspect of purchasing real estate in Australia. One of the most expensive expenses you’ll face when purchasing real estate in Australia is stamp duty, a state-imposed levy.
In South Australia, a property buyer must pay a one-time government tax called ‘stamp duty’ or ‘transfer duty.’ It must be paid upon the transfer of property.
Stamp duty money is added to the state or territory’s budget, which enables it to provide various public services like health, transportation, and emergency response.
Stamp duty is assessed on either the purchase price or the property’s market value, depending on which is higher. Therefore, stamp duty will cost more according to the property value. Regarding real estate in south Australia, few issues have been as divisive as stamp duty.
Who should pay stamp duty in SA?
Besides commercial properties, only residential and primary production properties are subject to a one-time fee when transferred inside South Africa. No discounts are offered, and they must be paid by owner-occupiers, investors, and first-time homebuyers.
Stamp duty is abolished for commercial property in South Australia:
The South Australian government declared that it would abolish stamp duty on commercial real estate transactions in its budget. Daniel Gannon, executive director of Property Council SA, says, “the elimination of this dead weight business tax is a green signal for investment and a great platform for investors seeking, and it will also speed transaction activity across the state.”
The benefits of this choice, he continued, will extend beyond individuals who deal in real estate in Adelaide and the surrounding area. The larger society may also gain from this move, according to Mr Gannon, who noted that SMEs and family enterprises would be in an excellent position to benefit from it.
Even though this declaration represents significant progress for South Australia, some people believe there is still much space for improvement.
“We support the treasurer’s decision to abolish stamp duty on commercial real estate sales after realizing that it is an unproductive tax. However, it follows that there is an equally strong argument for removing it from residential property”, according to HIA executive director Robert Harding.
Other states also leave behind commercial real estate property stamp duty in South Australia
Meanwhile, not all states and territories will have as much luck with official announcements on commercial real estate for sale in South Australia. Although we have backed the ACT government’s commitment to taxation reform, the chief minister is now breaching a promise made to the Property Council, claims Ms Carter, ACT executive director for the Property Council.
The Real Estate Institute of New South Wales president, Malcolm Gunning, welcomes the recent tax whitepaper. Stating it has allowed governments to consider renegotiating or possibly eliminating stamp duty since there have been requests for this for some time. According to HIA executive director Robert Harding, there is an equally strong argument for removing it from the residential property.