Is There Stamp Duty On A Commercial Property?

There is hardly ever good news related to tax and duty policies. However, on this occasion, the Government has something great in store. In July of 2018, all stamp duty SA was abolished for purchasers of qualifying land. The State Government had been in talks about making this change ever since 2015, and the good news came in 2018. 

But let’s first understand what they mean by qualifying land. As stated in Section 71DC of the Stamp Duties Act 1923, the qualifying land is the land that is not in use by anyone for primary production or residential purposes. All qualifying land is guided by the Land Use Code, which you can easily find in the Title and Valuation Package or the Property Interest Report.

You will find the following Land Use Codes that show the lands that are taken to be qualifying: 

  • 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)

You can check out the full list of the codes on the Government’s official website. The above list clearly shows there is no stamp duty on Land that qualifies as being used for commercial purposes. However, even then, it is recommended that you get in contact with your conveyancer to ensure you have all the relevant documents in place to save on stamp duty if in fact there are any savings available. 

You can also check out this stamp duty calculator for SA properties in case you are looking to purchase residential or production land. In the case of commercial land, you are in luck because South Australian authorities made it easy with an exemption on stamp duty. 

“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,” said Property Council SA executive director Daniel Gannon.

He went on to add, “Fewer taxes mean greater prospects of job creation and economic stimulation, particularly in the wake of this month’s worrying jobs data.”

While this is great for the people of South Australia, many still believe that we have a long way to go, but finally, we are looking in the right direction. 

You can contact our Conveyancing Specialists for more information on commercial land stamp duty in Adelaide. We have a team of professional and certified conveyancers who are well versed in the legislation updates and any changes that may come through. 

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