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Tax Reform

Your business future starts here

Our major tax reforms are making South Australia the best place to do business.

South Australia offers a highly competitive tax regime, affordable commercial properties and Adelaide ranks among the top five liveable cities in the world.

Tax reform package

The State Government’s tax reforms are helping to attract business to South Australia and reduce costs to business in this state so they can invest, grow and employ more South Australians.

The 2017-18 State budget builds on the Government’s major tax reforms to date – locking in the nation’s lowest payable payroll tax rate of 2.5% for the state’s small business and increasing the threshold for businesses eligible to receive tax cuts to a taxable payroll of $1.5 million.

Tax reforms – timing and the changes

Reduction in payroll tax rate for small businesses

The small business payroll tax rebate has been replaced by a new tiered payroll tax rate structure from 1 July 2017.

The payroll tax rate for businesses with Australian taxable payrolls between $600 000 and $1 million will be lowered from the current rate of 4.95% to 2.50%. The payroll tax rate will then phase up to the rate of 4.95% for businesses with Australian taxable payrolls above $1.5 million.

Non-residential stamp duty phase out by 2018

A two-thirds reduction in non-residential stamp duty is now in place – meaning any business that now purchases a commercial property in South Australia pays the lowest stamp duty costs of any other state in the country.

From 1 July 2018 the tax will be completely abolished, making all commercial business property transfers in South Australia stamp duty free.

Tax reforms already in place:

  • Abolished share duty.
  • Abolished stamp duty on non-real property transfers including aquaculture leases and statutory licences (e.g. non-fixed plant and equipment).
  • Abolished stamp duty on genuine corporate reconstruction.
  • Expanded the stamp duty concession for exploration tenements to include retention tenements.
  • Abolished the Save the River Murray Levy.
  • Abolished the Hindmarsh Island Bridge Levy.
  • Introduced a new cost of living concession of up to $200 for pensioners and low-income earners.
  • Extended the small business payroll tax rebate to 2016-17.
  • Indexed land tax thresholds by up to 6.2%, meaning the tax-free threshold will increase from $332 000 to $353 000 and implement other minor amendments to the Land Tax Act 1936.
  • Introduced conveyance duty and land tax exemptions for principal residential properties that are transferred into Special Disability Trusts for no consideration.
  • Extended the stamp duty off-the-plan apartment concession to 30 June 2018.
  • Introduced a pre-construction grant for off-the-plan apartments where contracts are entered into between 22 June 2017 and 30 September 2017.
  • Introduced a five year land tax exemption for apartments eligible for the stamp duty off-the-plan apartment concession and where the contract was entered into between 22 June 2017 and 30 June 2018.
  • Introduced a job accelerator grant scheme for newly created jobs (between 1 July 2016 and 30 June 2017). The grant is up to $10 000 for each new position created by businesses registered for payroll tax (with an annual Australian wide payroll of less than $5 million) or up to $4000 for each new position created for small businesses and start-ups. Up to an additional $5000 is available for eligible apprentices and trainees.

From 1 July 2018:

  • Abolish stamp duty on non-residential real property transfers.
  • Abolish stamp duty on transfers of units in unit trusts.
  • Remove the $1 million stamp duty landholder threshold.

The cost of doing business will fall substantially as a result of these tax reforms – reinforcing that South Australia is the best place to do business.

For further information visit the RevenueSA website.