Stamp Duty abolished for Commercial and Industrial property
It’s not very often do we associate good news with a tax or duty and I’m pleased to say we finally can! The good news is the abolishment of stamp duty for purchasers of “qualifying land” which will apply to contracts from 1 July 2018.
Since July 2015, the State Government has been phasing out stamp duty on “qualifying” land and with contracts from 1st July 2018, there will be no stamp duty payable.
What is qualifying land?
“Qualifying land” is the land that is not being used for residential purposes or primary production as defined in Section 71DC of the Stamp Duties Act 1923.
“Qualifying land” is guided by the Land Use Code. These codes can be found in the Property Interest Report or Title and Valuation Package (commonly known as ‘ARE’). The following Land Use Codes (LUC) headings will be taken to be qualifying land:
- Commercial (LUC 2000-2990)
- Industrial (LUC 3100-3909)
- Vacant Land (with some exceptions) (LUC 4110-4600)
- Institutions (LUC 5100-5990)
- Public Utilities (LUC 6100-6990)
- Recreation (LUC 7100-7900)
- Mining and Quarrying (LUC 8100-8409)
The full list of Land Use Codes and Revenue SA’s information on Qualifying Land, click here
If you are considering buying “qualifying” land, we recommend you speak with your conveyancer as soon as possible to ensure the relevant documents are correct to ensure you save on stamp duty.
Contact our conveyancing specialists at Conveyancing Matters for more information.
All the members of our professional conveyancing team are briefed on the legislation updates and the ramifications arising from them so they can assist you should these changes have an impact on your property transaction.