Land Holder

Refer to the Stamp Duty Land Holder Guide to Legislation for more information regarding the land holder provisions.

No liability to duty arises in relation to a conveyance or transfer of an interest in qualifying land (i.e. land that is being used other than for residential purposes or for primary production) from 1 July 2018 onwards. Accordingly, only conveyances or transfers of an interest in residential and primary production land remain liable to duty. Further information regarding qualifying land (and the phased reduction of rates applicable to qualifying land from 7 December 2015 to 30 June 2018) is available in Information Circular 86.

Along with the abolition of transfers involving qualifying land, changes will also be made to the land holder duty provisions.  
The land holder duty model ensures that if control of an entity changes and that entity holds land assets above the threshold, conveyance rates of duty will apply to the South Australian land transferred.

Effective from 1 July 2018, Sections 71(4), 71(4a) and 71(4b) of the Stamp Duties Act 1923 will be repealed. Further, the $1million threshold test in Part 4 of the Stamp Duties Act (specifically, Section 98), has been removed such that the land holder provisions apply to all interests in residential and primary production land only.

As a result of these amendments, a conveyance of units in a unit trust will no longer be taxable under Section 71 of the Stamp Duties Act. Rather, the land holder provisions will be expanded to include the conveyance of units in a unit trust which holds land irrespective of the land value, but only when a taxpayer acquires a prescribed interest in a unit trust, that is at least a 50% interest.

So from 1 July 2018 the land holder provisions will only apply to acquisitions or increases of prescribed interests in entities that hold or notionally hold land that is used for residential or primary production purposes.

This is for all residential and primary production land as the $1 million threshold will be removed.

If the land holding entity only holds qualifying land, then from 1 July 2018 no documentation will need to be provided to RevenueSA for stamping purposes.

This relates to unit transfers and Section 102B Returns.

So only where there is an acquisition or an increase of a prescribed interest in residential or primary production land will a Section 102B Return be required.


Example 1

Person X transfers 50% of the units in ABC Unit Trust to Person Y.  The ABC Unit Trust owns a commercial property valued at $2 500 000.

There would be no land holder duty in relation to this transfer as the property is classed as qualifying land.


Example 2

Person L transfers 35% of the units in Blue Unit Trust to Person M.  The Blue Unit Trust owns a residential property with a market value of $525 000.

As Person M is not acquiring a prescribed interest (50% or more) in the Blue Unit Trust, the land holder provisions will not apply.


Example 3

Person A transfers 75% of the units in XYZ Unit Trust to Person B.  The XYZ Unit Trust owns two residential properties with a combined value of $850 000.

As the properties owned by the XYZ are residential land, the land holder provisions will apply.