South Australian stamp duty update
Source: Taxation In Australia Journal Article
Published Date: 1 Apr 2012
In South Australia, the former “land rich” provisions of the stamp duty law have been replaced with a broader “landholder” model. The two-limb test of the land rich model is removed and replaced with a single criterion which is that the unencumbered value of the underlying local land assets of the relevant entity is not less than $1m.
This article examines and compares the former land rich rules and the new landholder rules. The key difference between the two models is that the landholder model imposes a duty where the value of the entity’s landholdings in the state exceeds a certain value, regardless of whether that land constitutes a substantial portion of the entity’s total assets, as required under the land rich model. As a result, the number of entities subject to the duty will inevitably increase, and there will be both a broadening of the duty base and an increase in actual duty payable.
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Details
- Published By: Marc Romaldi CTA, Lucy Simeoni
- Published On:1 Apr 2012
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