- Transitioning support for auto supply chain companies
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- New FBT entertainment cap introduced
- New reporting obligations for multinational companies
- Unlocking super
- The truth behind business failure
- 2015 Distinguished Family Business of the Year
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- Tax alert: GST & remote housing accommodation
- The Federal Government's Tax discussion paper released today
- New fees hurt developers’ bottom line
- Payroll Tax Rebate – Action before 23 November 2015
- New South Wales State Budget 2015-16
- Western Australian Real estate & construction update
- Victoria Real estate & construction update
- South Australia Real estate & construction update
- Queensland Real estate & construction update
- New South Wales Real estate & construction update
- State revenue offices and the ATO information sharing
- Redundant corporate entities?
- Streamlined process for new business applications
- Imported building materials under scrutiny
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- A message from our Global Head of Real Estate & Construction
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- The deadline is looming for the Exploration Development Incentive
- Valuing Employee Share Schemes (ESS) – Impending Tax Changes
- Queensland State Budget 2015-16
- New restrictions on entertainment salary packaging
- NADA conference day three
- NADA conference day two
- Do you have the keys to NADA 2015? Day 1
- South Australian State Budget 2015-16
- 27 Pay Periods in 2015/16
- Corporate simplification and solvent liquidations
- Fringe Benefits – Hidden FBT and deemed dividend issues
- NSW Payroll Tax Rebate
- SuperStream compliance
- Should I maintain my SMSF?
- Art and collectables as alternative investments
- Tax alert: GST ruling published
- Western Australian State Budget 2015-16
- New funding opportunities for Australian food & beverage companies
- Super fund investment choice – What are the options?
- Nominating beneficiaries for your superannuation benefits
- Superannuation consolidation
- Victorian State Budget 2015/16
- Encouraging innovation in Australia’s Life Sciences and Biotechnology industries
- Fraud in focus: Fraud and corruption in Banking and Financial Services
- Tax alert: Refunds of excess GST
- New Employee Share Scheme Bill Introduced
- SuperStream employer webinars
- Staying vigilant against fraud
- Tax Alert: Are you meeting your employment tax obligations?
- Tax alert: No change to R&D tax offset rates
- Act now to be ready for FATCA
- Tax alert: Changes to Employee Share Scheme Tax Laws
South Australia state tax review
The South Australian government has released a discussion paper which outlines possible reforms to the state’s taxation system. Of particular note, is the proposal to replace conveyance duty (primarily stamp duty) with a broad-based land tax. The discussion paper points out that conveyance duty is “generally considered to be one of the least efficient taxes levied by the State. Although it provides a significant source of state revenue (around 22% of total tax revenue), it is also highly volatile with annual growth ranging from negative 20% to positive 42%.
Conveyance duty is seen to be inefficient due to its significant impact on property transactions. In many cases it can be a disincentive for businesses who are considering purchasing property, whether it be to expand or restructure their operations.
The introduction of a broad-based land tax would mean “all owners of property pay an annual tax, not just when they purchase”, with a median value home to attract a tax of around $1,200 per year.
We certainly welcome any proposals that facilitate growth conditions for South Australia’s Real Estate & Construction sector and commend the South Australian Government’s report for thinking progressively in relation to addressing inefficient state taxes.
Any proposal for the abolition of stamp duty should be good news for residential builders, so long as other supply constraints, such as development restrictions are also reduced. Cheaper transaction costs without a reduction in red tape would only provide limited benefits.
Premier Jay Weatherill said the State Tax Review Discussion Paper will encourage business, industry and advocacy groups, and individuals to put forward ideas that are competitive, sustainable and fair.
Submissions close Friday, 10 April 2015.
South Australia lagging in building approvals
National ABS Building Approval numbers for new dwellings showed 2014 was a strong year, surpassing the 200,000 mark for the first time in a calendar year. South Australian Executive Director of the Property Council of Australia, Daniel Gannon, said “the record national numbers have been supported by domestic and foreign investment, however, South Australia is missing in action”.
In trend terms, dwelling approvals in South Australia rose by 0.2% in December. However, this is significantly less than approvals in Tasmania (4.8%), New South Wales (3.2%), Western Australia (0.9%), Queensland (0.8 %) and Victoria (0.6%). It appears that South Australia is not benefiting from the same levels of both domestic and foreign investment as the other states. However, Daniel Gannon says “The Property Council is firmly focused on working with the South Australian Government to achieve planning reform which integrates the infrastructure Adelaide needs to drive investment”.