The week has got off to a flying start for Eckermann Steinert Conveyancers with time being spent looking at the details of the State Budget Mid-Year Review, which has resulted in stamp duty cuts taking effect in South Australia earlier than planned.
South Australian Treasurer, Tom Koutsantonis has surprised the real estate industry by announcing the first reduction in stamp duty on transfers of non-residential, non-primary production real property would take effect from yesterday, December 7, 2015, almost seven months earlier than planned.
As I’ve been demonstrating here for a while, the reason clients are always better off with established, larger conveyancing firms like ours is that we have the resources to respond quickly to changes like these.
Potential stamp duty savings for businesses
According to the Advertiser article, Treasurer Tom Koutsantonis forecasts $355m surplus, brings forward business tax cuts in Midyear Budget Review, the treasurer says this first cut to stamp duty will be significant.
Estimates show these cuts will save more than $181,000 on a $10 million sale.
These cuts were meant to start on July 1 next year. Instead, the next cut of another third will happen in July 2017 with the final third going on July 2018.
These cuts aren’t for everyone: Make sure your conveyancer gets it right
In our briefings with staff at Eckermann Steinert Conveyancers, we have distilled the key points while providing detailed background directly from Revenue SA.
Our conveyancers are now equipped to determine which contracts involve the purchase of “qualifying land”, which is land NOT being used for residential purposes or in primary production.
Our staff have been given detailed breakdowns and will be able to advise you if you are in doubt about upcoming transfers of commercial or industrial real estate.
Furthermore, there are important details in the latest bulletin from Revenue SA explaining the details of ensuring the discount is only applied to stamp duty and not from LTO registration fees; they are untouched.
With changes happening in the economy and directly from within government and regulatory bodies, I urge you to consider subscribing to our occasional newsletter. It is free and will keep you abreast of changes that could impact your future property transfer decisions.
You can subscribe below, with an edition out just before Christmas.