On 22 June 2017, the Treasurer, Mr. Tom Koutsantonis released the 2017-18 Budget of South Australia with the following measures:
Stamp duty surcharge for foreign purchasers
From 1 January 2018, a surcharge of 4% will apply to all residential property purchases by foreign buyers and temporary residents. This measure is consistent with similar surcharges levied on foreign buyers of certain property in New South Wales, Victoria and Queensland, and Western Australia has also indicated that it will introduce a surcharge from 2019.
Major Bank levy
A South Australian major bank levy will be introduced from 1 July 2017. The levy will apply to all authorised-deposit-taking institutions that operate in South Australian and are liable for the Commonwealth Government major bank levy.
The amount payable under the South Australian major bank levy will be 0.015 per cent of South Australia’s estimated share of the total value of bank liabilities subject to the Commonwealth Government major bank levy at the end of each quarter. South Australia’s estimated share of relevant bank liabilities will be determined as South Australia’s gross state product share of national gross domestic product (currently around 6 per cent).
Other tax reforms and supporting measures
- Lower payroll tax rate for small businesses (replaces small business payroll tax rebate) – Rate of 2.5% for taxable payrolls up to $1 million with rate incrementally increasing to 4.95% for businesses with Australian payrolls above $1.5 million.
- Off-the-plan apartment state-wide stamp duty concession extended to 30 June 2018.
- Land tax exemption for 5 years for investors who enter into off-the-plan apartments contracts between 22 June 2017 and 30 June 2018.
- Pre-construction grant of $10 000 for purchases of off-the-plan apartments where construction of the apartment has not commenced and contract is entered into between 22 June 2017 to 30 September 2017.
- Job Accelerator Grant increased by up to $5000 for each eligible new apprentice or trainee employed and eligible for an existing Job Accelerator Grant.
