South Australian Land Tax – distinguishing between what’s proceeding and what’s on ice, together with key dates

The changes to South Australian Land Tax are fast approaching with the new regime coming into effect midnight 30 June 2020.  However, a combination of the bushfire recovery effort and COVID-19 have meant that they will be significantly pared back – this is what you need to know.

Revaluation Initiative Cycle 2 deferred until 2021/2022 Financial Year
Annual General Valuation Proceed as usual
Annual General Valuation Apply from 1 July 2020 unless designated beneficiary is nominated
Reduction in land tax rates Effective from 1 July 2020
Aggregation and grouping Effective from 1 July 2020 but with significant relief for some taxpayers, which have been expanded due to COVID-19

The concessions to ease any adverse impacts of the introduction of the new regime (which have been increased as part of the coronavirus relief package announced on 26 March 2020) include:

  • Transitional relief over three years for eligible taxpayers who have an increase in their land tax assessment as a result of the changes in aggregation of land [see more below]
  • Relief for eligible developers of “affordable housing” [see more below]
  • Ability for residential developers to disaggregate companies that own land that is being held solely for the purpose of being developed as a residential development of more than 10 allotments.

At Grant Thornton, we have specialists who are advising clients on the new regime and are available to provide advice with respect to existing and proposed land-owning structures as well assist in the required dealings with Revenue SA regarding the new portal and beneficiary nomination requirements.

As they are complex, we set out some more detailed of these aspects below.