State Budget update

The 2017-18 South Australian State Budget, handed down on 22 June 2017, contained a number of measures relevant to taxes and grants administered by RevenueSA.

The legislative changes to implement these measures were originally included in the Budget Measures Bill 2017. However, the Budget Measures Bill 2017 was withdrawn and replaced by a new Bill, the Stamp Duties (Foreign Ownership Surcharge) Amendment Bill 2017, which introduced the foreign owner surcharge, which was previously included in the Budget Measures Bill 2017, and increased the rate of the foreign owner surcharge from 4% to 7%.

The Stamp Duties (Foreign Ownership Surcharge) Amendment Bill 2017 received Royal Assent on 12 December 2017.

General information in relation to the foreign owner surcharge can be found on the foreign ownership surcharge page.

In regard to the other measures originally included in the Budget Measures Bill 2017, the Government has announced that it will grant payroll tax ex gratia relief that covers the amount that would be payable if the statutory rate of 4.95% cent was applied instead of the Government’s intended rate of 2.5% (or a rate in the phase out zone for payrolls between $1 million and $1.5 million). As per previous advice, RevNet will continue to calculate payroll tax at the lower rate (where applicable) with any required adjustments being made as part of the annual reconciliation process. Should you have questions in relation to this please contact our payroll tax team on 8204 9880 or payrolltax@sa.gov.au.

The Government has also committed to the provision of ex gratia relief in relation to all the off-the-plan measures previously announced as part of the 2017-18 State Budget (this includes stamp duty concessions, the $10 000 housing construction grant for eligible purchases and the five year land tax exemption for eligible apartments bought off-the-plan where the contract is entered into between 22 June 2017 and 30 June 2018). Should you have questions in relation to this please contact housing grants team on 8226 3750 or fhog.support@sa.gov.au.

The other amendments to tax and grant legislation announced as part of the 2017-18 State Budget, and previously included in the Budget Measures Bill 2017, will not proceed at this stage.

Further information on the 2017 State Budget can be found on our State Budget Updates page.