South Australia has pledged to phase out the stamp duty on commercial property sales over the next three years.
Tom Koutsantonis, the Treasurer, stated that he was looking for a way to stimulate the business sector in the state, which has the highest unemployment rate in the country.
Doing away with the stamp duty on the 6,000 commercial property transfers taking place annually will leave the South Australian government coffers $389 million lighter over the three years starting July 1, 2016. It will not apply to farm properties.
By 2018-2019, a $1 million South Australian commercial deal will no longer be subject to a $48,830.00 duty. An acquisition worth $10 million will save $543,830.00.
Stamp duty expert Joanne Seve stated that other mainland states were unlikely to make similar reforms and abolish stamp duty on commercial properties.
She pointed out that the cost of eliminating the tax would be at a much greater cost in other states and that they would have to find a replacement source of revenue.
