This page is retained for historical reference only. The Off-the-Plan Concession ceased for contracts entered into on or after 1 July 2018.
What was the off-the-plan apartment concession?
The concession provided a full stamp duty concession on a transfer of a new apartment or substantially refurbished apartment for a contract entered into from 31 May 2012 to 30 June 2014 (capped at stamp duty payable on a $500,000 apartment) and a partial concession from 1 July 2014 to 30 June 2018.
Until the legislative amendments to change the contract dates were assented to, the Application for Stamp Duty Concession pursuant to a contract for sale and purchase of an apartment dated from 1 July 2017 had to be submitted to RevenueSA for assessment.
Foreign purchasers who entered into a contract on or after 22 June 2017 were not eligible for the concession.
For contracts entered into between 20 June 2016 and 30 June 2018 (inclusive), the concession applied to purchases of off-the-plan apartments located anywhere in South Australia.
A Pre-Construction Grant for Off-the-Plan Apartment Puchasers of $10,000 may also have been available for contracts entered into between 22 June 2017 and 30 September 2017.
For contracts entered into between 28 October 2013 and 19 June 2016 (inclusive), the concession applies to purchases of off-the-plan apartments located within the defined area (shown in the map below) and to sites that are contiguous to that area.
For contracts entered into between 31 May 2012 and 27 October 2013 (inclusive), the concession only applied to purchases of off-the-plan apartments located:
- within the area of the Corporation of the City of Adelaide;
- on any land within the area where the Bowden Redevelopment project (Bowden Village); or
- on any land located within the area known as 45 Park, Gilberton.
Further information is available in Information Circular 48, Information Circular 65 and Information Circular 89.
This concession replaced the Inner City Rebate. Contracts entered into on or before 30 May 2012 may have been eligible to receive the Inner City Rebate. See Information Circular 45 for further details.
Map of eligibility area for off-the-plan apartment stamp duty concession (28 October 2013 to 19 June 2016)
How much was the off-the-plan apartment concession?
CONTRACTS ENTERED INTO BETWEEN 1 JULY 2014 AND 30 JUNE 2018
A partial stamp duty concession was available for off-the-plan apartments purchased pursuant to qualifying off-the-plan contracts entered into between 1 July 2014 to 30 June 2018 (both dates inclusive).
Market Value $500,000 or less
For qualifying off-the-plan contracts with a market value of $500,000 or less, stamp duty was payable on the dutiable value as defined. The dutiable value varied depending on the stage of completion of the residential development.
The deemed unimproved land value of an apartment was set by the legislation at 35% of the market value of the apartment, with the value of construction to reflect the nature of works already performed.
In these cases the duty was calculated under the following formula:
DV = (MV x 0.35) + (MV x 0.65 x C)
Where
DV = The dutiable value
MV = The market value
C = The percentage that represents the stage at which the construction or refurbishment of the multi- storey residential development in which the relevant apartment is (or is to be) situated has reached at the relevant contract date, expressed as a percentage of completion of the work, those stages being:
| Stage 1 | Stage 2 | Stage 3 | Stage 4 | Stage 5 | Stage 6 |
|---|---|---|---|---|---|
| 0% | 20% | 40% | 60% | 80% | 100% |
Stages of completion were published as a Notice in the Gazette on 5 June 2014 (page 2238). The stages were:
Stage 1 was where no work in relation to the building had commenced (0%).
Stage 2 was where the apartment's floor slab had been poured and external walls had been erected (20%).
Stage 3 was where the apartment's internal frame walls had been erected and the first fix plumbing and electrical had been completed (40%).
Stage 4 was where the apartment's wall and ceiling linings had been completed (60%).
Stage 5 was where the apartment's joinery, tiling and second fix carpentry had been completed (80%).
Stage 6 was where the work had been practically completed and the apartment was ready for occupation (100%).
Market Value Over $500,000
Where the market value of the apartment exceeded $500,000, the duty chargeable was the duty payable under Schedule 2 at the date of sale, reduced by an amount determined according to the stage at which the construction or refurbishment of the multi-storey residential development in which the relevant apartment was (or was to be) situated had reached at the relevant contract date.
The Schedule 2 amounts by which duty was reduced at each stage were as follows:
| Stage 1 | Stage 2 | Stage 3 | Stage 4 | Stage 5 | Stage 6 |
|---|---|---|---|---|---|
| $15,500 | $12,800 | $9,750 | $6,500 | $3,250 | $0 |
Example
Apartment purchased for
Normal duty
Less concession (for stage 2)
Duty payable
$600,000
$26,830
$12,800
$14,030
CONTRACTS ENTERED INTO BETWEEN 31 MAY 2012 AND 30 JUNE 2014
No stamp duty was payable on the purchase of apartments (in the eligible area) bought through a qualifying off-the-plan contract entered into between 31 May 2012 to 30 June 2014 (both dates inclusive) where the apartment had a market value of $500,000 or less.
Where an apartment purchased via a qualifying off-the- plan contract had a market value greater than $500,000, the purchaser was entitled to a stamp duty concession of $21,330.
Example
Apartment purchased for
Normal duty
Less concession
Duty payable
$700,000
$32,330
$21,330
$11,000
What was the date of sale?
For the purposes of the concession, the legislation deemed the date of sale of the property that would apply under Section 60A to be the date on which the relevant qualifying off-the-plan contract was entered into.
The market value of an apartment for the purposes of this concession was therefore the consideration set out in the relevant contract, unless the Commissioner was of the view that the consideration was less than the market value of the apartment.
In these cases the Commissioner may have sought an independent valuation to determine the market value of the apartment as of the date of the contract.
What if there were two or more purchasers?
Only one application could be made in relation to a qualifying apartment and therefore, in relation to an apartment being purchased by two or more purchasers, any benefit arising under the concession should be shared jointly.
What is a qualifying off-the-plan contract?
A qualifying contract was a contract for the purchase of an apartment entered into between 31 May 2012 and 30 June 2018 (both dates inclusive) where, at the time that the contract was entered into, the building in which the apartment was (or was to be) situated:
- was a new building that was yet to be constructed;
- was a new building for which construction had commenced and where the Commissioner was satisfied that the work had not been substantially completed; or
- was an existing building where the Commissioner was satisfied that the building was to be substantially refurbished and that refurbishment:
- was yet to commence; or
- had commenced but the Commissioner was satisfied that the work had not been substantially completed.
What was a qualifying apartment?
A qualifying apartment was an apartment that was (or was to be) situated:
CONTRACTS ENTERED INTO BETWEEN 20 JUNE 2016 AND 30 JUNE 2018 (INCLUSIVE)
Developments within South Australia.
CONTRACTS ENTERED INTO BETWEEN 28 OCTOBER 2013 AND 19 JUNE 2016 (INCLUSIVE)
Developments within the defined area (see map above) and to sites that were contiguous to that area.
CONTRACTS ENTERED INTO BETWEEN 31 MAY 2012 AND 27 OCTOBER 2013 (INCLUSIVE)
- within the area of the Corporation of the City of Adelaide;
- on any land within the area where the Bowden Redevelopment project (Bowden Village); or
- on any land located within the area known as 45 Park, Gilberton.
What is an apartment?
An apartment is a self-contained residence that is, or is to be, situated in a multi-storey residential development, but does not include a townhouse.
A townhouse is considered to be a dwelling consisting of two or more storeys where the building (which may be a building joined to another building or buildings) constituting the dwelling occupies a site that is held exclusively with that building.
A multi-storey residential development is a building of two or more storeys containing two or more independent residential premises.
What is a relevant contract date?
A relevant contract date is the date on which the qualifying off-the-plan contract that is relevant to the application of this section was entered into.
How did applicants apply?
Applications could be processed by a conveyancer through RevenueSA Online or submitted to RevenueSA for assessment.
Applicants with contracts entered into on or after 22 June 2017 were required to complete an Application for Stamp Duty Concession on the Purchase of an Off-the-Plan Apartment.
Applicants with contracts entered into on or before 21 June 2017i were required to complete an Application for Stamp Duty Concession on the Purchase of an Off-the-Plan Apartment (Pre 21 June 2017).
Contact Us
When contacting us please provide your property information and conveyancer information, where applicable.
| stamps@sa.gov.au | |
| phone | (08) 8372 7534 |
| fax | (08) 8226 3737 |
| post |
RevenueSA Kaurna Country GPO Box 1353 ADELAIDE SA 5001 |
| DX | DX 179 |
You can reach us during business hours, excluding public holidays:
- Monday, Tuesday, Thursday, Friday: 8:30am - 5:00pm (ACST or ACDT)
- Wednesday: 10:00am - 5:00pm (ACST or ACDT)
South Australia observes daylight saving.
- ACST: Australian Central Standard Time is from early April to early October.
- ACDT: Australian Central Daylight Time is from early October to early April.
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You can do so via our feedback and complaints page.