13 Aug 2015 Business migrants
The State Government is creating a State tax system to attract businesses to South Australia by reducing costs so they can invest, grow and create jobs.
The 2015-16 State Budget included major tax reforms that reward effort and remove barriers to business investment and expansion.
The State Government is making South Australia a better place to do business by providing almost $670 million in tax reductions over the next four years, including reducing and abolishing business stamp duties:
- From July next year the State Government will begin the phase out of stamp duty on non-residential property transfers, making South Australia the lowest taxing State for business property purchases in Australia.
By July 2018, the tax will be completely abolished meaning every time a business is purchased in South Australia it will be stamp duty free. South Australia will be the only Australian state to not levy stamp duty on the purchase of non-residential property.
For example, an investor or a business migrant purchases a commercial building in the Adelaide CBD that has a capital value of $20 million. The business migrant will save up to $1.1 million in stamp duty depending on when the property is purchased.
- Stamp duty on non-real property transfers has been abolished. This means that every time someone purchases a business in South Australia, the non-fixed plant, machinery and equipment, goodwill or intellectual property is now stamp duty free. This will improve South Australia’s competitiveness relative to many of the larger Australian states that levy this duty.
For example, a Chinese business investor decides to buy a company. The purchase of that company involves non‑real property assets of around $1.0 million. This investor will save up to $48,830 in stamp duty as a result of the Government's tax reform.
- Share duty on the transfer of shares not listed on a recognised stock exchange has been abolished.
For example, a business migrant purchases $1 million worth of unlisted shares. This migrant will save $6000 in stamp duty as a result of the Government’s tax reform.
By abolishing business stamp duties, the State Government has removed a significant cost to business investment and expansion, making it easier and cheaper for business migrants to set up and expand their own businesses in South Australia.
To find out more, download a copy of the South Australian Government’s response to the State Tax Review.