Published on 01 Apr 12
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
In South Australia, the former “land rich” provisions of the stamp duty law have been replaced with a broader “landholder” model. The two-limb test of the land rich model is removed and replaced with a single criterion which is that the unencumbered value of the underlying local land assets of the relevant entity is not less than $1m.
This article examines and compares the former land rich rules and the new landholder rules. The key difference between the two models is that the landholder model imposes a duty where the value of the entity’s landholdings in the state exceeds a certain value, regardless of whether that land constitutes a substantial portion of the entity’s total assets, as required under the land rich model. As a result, the number of entities subject to the duty will inevitably increase, and there will be both a broadening of the duty base and an increase in actual duty payable.
Current at 10 December 2014
Click here to expand/collapse more articles by Lucy SIMEONI.