I have recently released a draft submission titled Improving South Australian Taxation Administration: Harmonising with Proven State and Federal Approaches (“Taxinator’s Manifesto”).
The submission has been released in my personal capacity. The intention is to stimulate informed discussion and gather practitioner feedback.
Why reform is needed
There are areas of South Australia’s tax administration that are in clear need of modernisation and simplification. Members regularly encounter:
- Extended delays in objections and administrative applications
- Rigid procedural rules that generate disproportionate outcomes
- Inconsistency with ATO and interstate administrative models
- Limited mechanisms to correct genuine taxpayer or adviser error
What I've proposed
The submission outlines 16 coordinated, revenue neutral proposals designed to address these issues. The focus is not on reducing tax revenue, but on improving certainty, timeliness, fairness and administrative efficiency for taxpayers, advisers, RevenueSA and government.
Examples of proposals include:
A six month decision deadline for objections and certain applications
Require that RevenueSA decide any tax objection,review applicationorsubstantive submissionswithin 6 months, and if not, then the objection isdeemedallowed in the taxpayer’sfavour. This creates a strong incentive for timely resolution of disputesor enquiries.
My proposal for SA goes a step further in favor of taxpayers: “silence is a yes”. If RevenueSA fails to determine an objection within 6 months, the objection would be automatically allowed (the assessment reduced accordingly).
Introduction of a binding private rulings regime
Establish a formal private ruling system in South Australia, whereby taxpayers can apply to RevenueSA for a binding ruling on how a tax law applies to their specific circumstances or transaction.
The ruling – issued in writing – would bind RevenueSA to the stated tax treatment as long as the facts are accurately disclosed and carried out. This mirrors the ATO’s private ruling regime and would cover state taxes (stamp duty, land tax, payroll tax, etc.), giving taxpayers certainty in advance.
Reform of payroll tax grouping rules
Overhaul the grouping rules for payroll tax to target truly related businesses and eliminate unfair outcomes.
Statutory error rectification mechanisms
Taxpayers in South Australia can face harsh outcomes when a genuine mistake – whether a simple clerical error or a misunderstanding of legal requirements – causes them to miss out on tax concessions or pay more tax than is properly due. Under current law, there is limited ability to correct such errors once a transaction is completed or an assessment issued.
This proposal advocates for a legislative reform to introduce a statutory rectification mechanism across all South Australian state tax laws. The goal is to ensure fairness and equity in tax administration by allowing taxpayers to correct genuine errors within a strict timeframe, subject to safeguards against abuse. This reform would align South Australia’s tax system with principles of good administration and mirror, at the state level, some of the remedial flexibilities available under Commonwealth tax law.
Modernisation of the Stamp Duties Act
Accelerate and finalise the ongoing rewrite of the Stamp Duties Act 1923 (SA), enacting a new Duties Act that is drafted in modern language, with a clearer structure and up-to-date concepts.
The rewrite should simplify provisions, remove obsolete sections, and possibly convert stamp duty from the old instrument-based approach to a more straightforward transaction-based duty, as other jurisdictions have done. Essentially, bring South Australia’s duties legislation from 1923 into the 21st century.
Improved review pathways through SACAT
Create a pathway for taxpayers to appeal or seek review of state tax decisions in the South Australian Civil and Administrative Tribunal (SACAT), rather than exclusively through the Supreme Court.
The pathway forward
The purpose of circulating this draft is to gather member input. Following consultation and feedback, the SA State Taxes Committee can consider whether to develop a formal TTI submission on state tax reform.
Member engagement is critical. Constructive commentary, partial support, disagreement and alternative ideas are all welcome. Practical examples drawn from experience are particularly valuable.
Reform will not occur without sustained and informed engagement. If we believe aspects of SA state tax administration can be improved, now is the time to contribute to that discussion.
About the author
Adrian Cartland
Adrian Cartland, Principla at Cartland Law and Chair of the SA State Taxes Committee has been a member of The Tax Institute since 2007 and has approximately 18 years’ experience in tax. The Tax Institute's SA State Taxes Committee is focused on state level taxation matters in SA, particularly duties, and addresses both technical and practical issues. It plays an important role in advising on and formulating tax policies specific to SA and representing members with relevant Government bodies, such as the Treasurer and RevenueSA.
This document has been prepared by Adrian Cartland. The views expressed are those of the author and do not represent the views or position of The Tax Institute. Circulation of the submission to members should not be taken as endorsement.