South Australia: 2018 Budget Measures - KPMG Australia
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South Australia: 2018 Budget Measures

South Australia: 2018 Budget Measures

Jane Crisp and Jenny Lee discuss new measures introduced in the South Australian Budget.


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The 2017-18 South Australian State Budget handed down on 22 June 2017 include the following measures which are contained in the Budget Measures Bill 2017:

Stamp duty surcharge for foreign purchasers

  • From 1 January 2018, a stamp duty surcharge of 4 percent will apply to direct and indirect acquisitions of residential land by foreign purchasers. Foreign purchaser will include:
    • Foreign natural person who is not an Australian citizen, Australian permanent resident or New Zealand citizen who holds a special category visa
    • Foreign corporation if it is incorporated outside Australia or where at least 50 percent of its shareholding is held by foreign persons, companies or trusts
    • Foreign trust where any of the following persons are foreign: the trustee, a person who has the power to appoint under the trust, an identified object under the trust or a person who takes capital of the trust property in default. 
  • If a foreign purchaser ceases to be a foreign person within 12 months of acquiring the residential property, a refund of the surcharge will be available. However, the surcharge will be retrospectively imposed where a person, corporation or trust becomes a foreign purchaser within three years of acquiring the residential property.

Major Bank levy

  • From 1 July 2017, major banks that offer services in South Australia will be liable for South Australian major bank levy of 0.015 percent on the South Australian portion of the total value of bank liabilities subject to the Commonwealth bank levy.
  • Banks liable for the State levy will be required to provide a quarterly return and make levy payments to RevenueSA within the same timeframes that apply to the Commonwealth levy.

Other measures

  • Job Accelerator Grant payments will be increased by up to $5,000 for businesses that hire apprentices or trainees. The additional grant will be backdated to 1 July 2016. 
  • From 22 June 2017, the off-the-plan stamp duty concession will be extended until 30 June 2018 but will not be available to foreign purchasers.
  • A $10 000 grant will be provided to eligible off-the-plan apartment purchasers where the contract is entered into between 22 June 2017 and 30 September 2017.
  • A five year land tax exemption will apply to eligible apartments bought off-the-plan where the contract is entered into between 22 June 2017 and 30 June 2018. 
  • From 1 July 2017, payroll tax rate for small businesses with taxable payrolls between $600,000 and $1 million will be reduced from 4.95 percent to 2.5 percent.

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