SOUTH AUSTRALIA
STATE TAXATION OFFICE
| Stamp Duties | Circular No. 148 |
FIRST HOME CONCESSION - EXTENSION OF SCHEME
Legislation has now been passed as the Stamp Duties (Miscellaneous) Amendment Act 1997, assented to on 27 March 1997, which amends section 71C of the Stamp Duties Act 1923, and provides for the extension to the First Home Concession scheme approved by the Government earlier this year. This legislation also counters a tax avoidance issue (refer to Circular 149).
Details of the extended scheme are described below.
DATE OF OPERATION AND APPLICABLE CONCESSION
The extension to the First Home Concession scheme applies to conveyances arising from contracts entered into between 1 February 1997 and 31 January 1998 inclusive. (For contracts entered into on or after 1 February 1998, the applicable concession will be as described in Circular number 139.)
A concession equal to the full amount of the duty otherwise payable is available where the value of the property conveyed does not exceed $100,000.
The amount of the concession is reduced on a proportional basis where the value of the property exceeds $100,000, and no concession is available where the value of the property exceeds $150,000.
Purchasers must meet the eligibility requirements of Section 71C of the Stamp Duties Act 1923.
BASIS FOR CALCULATING THE CONCESSION
The duty payable, after deduction of the concession, can be calculated using the following formula:
A = B - [ $2,830 - ( 56 ( E - $100,000 ) ) ]
$1,000
where:
A is the amount of duty payable after deducting the concession amount;
B is the amount of duty normally payable (ie prior to deducting the concession amount); and
E is the value of the property conveyed, rounded up to the nearest $1,000.
Schedule 1 illustrates the amount of duty normally payable ("B"), the amount of concession, and the net amount of duty now payable ("A") for conveyance values between $100,000 and $150,000 inclusive.
OTHER CONDITIONS
Conditions relating to the eligibility of applicants, the application process, offence provisions and compliance monitoring have not altered as a result of the extension to the First Home Concession scheme. Full details are available in State Taxation Office Circular number 139.
ENQUIRIES
Enquiries should be directed to the State Taxation Office by telephone on (08) 8226 3750, or by fax on (08) 8226 3737.
27 March, 1997 COMMISSIONER OF STATE TAXATION
SCHEDULE 1
Illustration of concession amounts and duty payable for conveyances arising from contracts entered into between 1 February 1997 and 31 January 1998 inclusive.
Value of the property conveyed |
Duty normally payable |
Concession |
Duty now payable |
Value of the property conveyed |
Duty normally payable |
Concession |
Duty now payable |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
100,000 |
2,830 |
2,830 |
0 |
126,000 |
3,870 |
1,374 |
2,496 |
101,000 |
2,870 |
2,774 |
96 |
127,000 |
3,910 |
1,318 |
2,592 |
102,000 |
2,910 |
2,718 |
192 |
128,000 |
3,950 |
1,262 |
2,688 |
103,000 |
2,950 |
2,662 |
288 |
129,000 |
3,990 |
1,206 |
2,784 |
104,000 |
2,990 |
2,606 |
384 |
130,000 |
4,030 |
1,150 |
2,880 |
105,000 |
3,030 |
2,550 |
480 |
131,000 |
4,070 |
1,094 |
2,976 |
106,000 |
3,070 |
2,494 |
576 |
132,000 |
4,110 |
1,038 |
3,072 |
107,000 |
3,110 |
2,438 |
672 |
133,000 |
4,150 |
982 |
3,168 |
108,000 |
3,150 |
2,382 |
768 |
134,000 |
4,190 |
926 |
3,264 |
109,000 |
3,190 |
2,326 |
864 |
135,000 |
4,230 |
870 |
3,360 |
110,000 |
3,230 |
2,270 |
960 |
136,000 |
4,270 |
814 |
3,456 |
111,000 |
3,270 |
2,214 |
1,056 |
137,000 |
4,310 |
758 |
3,552 |
112,000 |
3,310 |
2,158 |
1,152 |
138,000 |
4,350 |
702 |
3,648 |
113,000 |
3,350 |
2,102 |
1,248 |
139,000 |
4,390 |
646 |
3,744 |
114,000 |
3,390 |
2,046 |
1,344 |
140,000 |
4,430 |
590 |
3,840 |
115,000 |
3,430 |
1,990 |
1,440 |
141,000 |
4,470 |
534 |
3,936 |
116,000 |
3,470 |
1,934 |
1,536 |
142,000 |
4,510 |
478 |
4,032 |
117,000 |
3,510 |
1,878 |
1,632 |
143,000 |
4,550 |
422 |
4,128 |
118,000 |
3,550 |
1,822 |
1,728 |
144,000 |
4,590 |
366 |
4,224 |
119,000 |
3,590 |
1,766 |
1,824 |
145,000 |
4,630 |
310 |
4,320 |
120,000 |
3,630 |
1,710 |
1,920 |
146,000 |
4,670 |
254 |
4,416 |
121,000 |
3,670 |
1,654 |
2,016 |
147,000 |
4,710 |
198 |
4,512 |
122,000 |
3,710 |
1,598 |
2,112 |
148,000 |
4,750 |
142 |
4,608 |
123,000 |
3,750 |
1,542 |
2,208 |
149,000 |
4,790 |
86 |
4,704 |
124,000 |
3,790 |
1,486 |
2,304 |
150,000 |
4,830 |
30 |
4,800 |
125,000 |
3,830 |
1,430 |
2,400 |
Example:
Purchase price of $103,250; normal duty on $103,250 is $2,962.
Duty now payable = $2,962 - [ $2,830 - ( 56 ( $104,000 -
$100,000) ) ]
$1,000
= $2,962 - [ $2,830 - ( 56 x $4 ) ]
= $2,962 - $2,606
= $356