Stamp Duty cut, for land that qualifies.
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Not very often do we associate good news with a duty or tax! Well this time we can. There is good news for purchasers of non-residential “Qualifying Land” with the complete abolishment of stamp duty from July 1 2018.
Since 2015 the State Government has been phasing out Stamp duty on non-residential, non-primary production land. From 7 December 2015 the duty payable was reduced by one-third, with a further one-third reduction from 1 July 2017 and now 1 July 2018 sees the Stamp duty on transfers of non-residential, non-primary production land being abolished.
So how do you get this lucky? Here’s the catch, it only applies to “Qualifying Land” . What is that I hear you ask?
Qualifying land means land that is being used other than for residential purposes or for primary production as defined in Section 71DC of the Stamp Duties Act 1923.
Land use codes (LUC) are generally how the land is deemed qualifying or not. The land use codes within the following Land Use Code (LUC) headings will be taken to be qualifying land:
- Commercial (LUC 2000-2990)
- Industrial (LUC 3100-3909)
- Vacant Land (with some exceptions) (LUC 4110-4600)
- Institutions (LUC 5100-5990)
- Public Utilities (LUC 6100-6990)
- Recreation (LUC 7100-7900)
- Mining and Quarrying (LUC 8100-8409)
Land Use Codes can be obtained on a PIR Search or Council Search (*Gemma I cannot recall if it is on Council Rates?)
So, if you are considering investing in any of the above type of transactions, you could be saving a lot on fees!
Contact our Conveyancing specialists for more information.
To see Revenue SA’s information on Qualifying Land, click here.
*NB Stamp duty on transfers of residential and primary production land will remain unchanged. Vacant land will be considered to be used for primary production or residential purposes in certain circumstances.