For more in-depth information on the South Australia State Budget 2017-18, read the below summaries:
Major announcements made include:
Infrastructure and Transport
Jobs
Energy
Health
Education
The budget delivers the following State taxes changes
1. Payroll tax cut
The payroll tax cut for small business will be extended and retained permanently. Specifically, a small business payroll tax rate of 2.5% will apply to businesses with payrolls between $600,000 and $1 million, phasing up to the general rate of 4.95% for payrolls above $1.5 million. An estimated 1300 employers will benefit compared with the assistance provided under the temporary rebate scheme.
2. Major bank levy
The significant spending in this budget has been partially funded by a new state-based “major bank” levy equal to 0.015% of South Australia’s share of liabilities subject to the Federal major bank levy at the end of each quarter. This new levy will apply from 1 July 2017 and will have a direct impact on the big four banks – ANZ, CBA, NAB, Westpac, as well as Macquarie Bank and is estimated to raise $370 million over the next four years.
3. Conveyance duty
A conveyance duty tax has been announced, providing a 4% surcharge on foreign buyers of residential property from 1 January 2018. This follows the introduction of a conveyance duty surcharge by other major States in recent years. The South Australian surcharge will be lower than the Victorian rate of 7% and the new rate of 8% that will apply in NSW from 1 July 2017, but higher than the 3% that applies in Queensland.
4. Off-the-plan stamp duty concessions
The off-the-plan stamp duty concession has been extended to 30 June 2018. This allows eligible applicants to benefit from stamp duty savings of up to $15,500. However, from 1 July 2017, this concession will not be available to foreign purchasers.
Further, where an off-the-plan apartment sale purchase contract has been entered into between 22 June 2017 and 30 September 2017, and construction of the apartment has not started, a $10,000 pre-construction grant will be available for eligible off-the-plan purchases. The aim of this announcement is to assist developers with achieving sales targets which allow them to proceed with construction.
In addition, where a contract has been entered into between 22 June 2017 and 30 June 2018 for the purchase an off-the-plan apartment, the purchaser will be entitled to a five-year land tax exemption.
5. New apprentice and trainee grants
The grant for hiring a new apprentice or trainee has been increased by up to $5,000, which when combined with the existing grant, brings the total benefit to up to $15,000.
