SA Mid-Year Budget Review
A Circular from RevenueSA on 16 December 2011 (Information Circular 34), reveals that in the 2011-2012 Mid-Year Budget Review released by the Treasurer:
“The Government has announced that it will delay the abolition of stamp duty on non‑real non-residential conveyances by one year to 1 July 2013.”
It has been confirmed that stamp duty on unlisted financial products will be abolished, as previously announced, on 1 July 2012.
The Circular also states that:
“The government’s revised timeline for abolishing non-real non-residential conveyances is consistent with the government’s commitments under the Inter-Governmental Agreement on Federal Financial Relations (IGA)”.
The South Australian Government has previously unequivocally stated that stamp duty on non‑real property transactions would be abolished, in accordance with the IGA, in full from 1 July 2012. In the Mid-Year Budget Review for 2008-2009, the then Treasurer Kevin Foley announced that:
“The abolition of stamp duty on non-quoted marketable securities and non‑real property transfers will be deferred to 1 July 2012.
. . .
the Government remains committed to the abolition of these taxes and the revised timeframe is consistent with the Inter-Governmental Agreement on Federal Financial Relations (due to commence from 1 January 2009). The taxes will no longer be phased out, but rather will be abolished in full from 1 July 2012.”
The saga relating to the abolition of inefficient State taxes in accordance with the IGA is discussed in an article in the DW Report of Autumn 2011 (http://www.donaldsonwalsh.com.au/images/uploads/files/DW_Report_Autumn_2011_Web_Version.pdf). The Government originally announced that remaining taxes, including non-real property stamp duty, would be abolished over a two year period from 1 July 2009 with full abolition from July 2010.
With South Australia’s reputation as the highest business taxing State (see the DW Report for Summer 2011 – http://www.donaldsonwalsh.com.au/images/uploads/files/DW_Report_Summer_2011_Web.pdf) this further delay and perpetuation of inequitable and inefficient taxes will be a continuing disincentive and burden for business in South Australia.
This communication provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Should you wish to discuss any matter raised in this article, or what it means for you, your business or your clients' businesses, please feel free to contact us.