Stamp Duties
Circular No. 276
STAMP DUTIES ACT 1923
RENTAL BUSINESS PROVISIONS
SUMMARY OF CHANGES EFFECTIVE FROM 1 JULY 2007
As previously advised, as part of the 2005/2006 State Budget, the Government announced that rental duty would be phased out between 1 July 2007 and 1 July 2009. (Refer to Circular No. 255).
Commercial hire purchase and other equipment finance arrangements for terms of not less than nine months currently attract duty at a rate of 0.75% of rental income. The duty rate will reduce to 0.5% from 1 July 2007, 0.25% from 1 July 2008 and will be abolished with effect from 1 July 2009.
All other rental business attracts duty at a rate of 1.8% on rental income in excess of $6,000 per month. The duty rate will reduce to 1.2% from 1 July 2007, 0.6% from 1 July 2008 and will be abolished with effect from 1 July 2009.
Statements lodged must declare the total income received during the preceding period in respect of the dutiable components of the rental business. The dutiable components, which are defined within the Stamp Duties Act 1923, are based on when the contract was entered into as follows:
General Rental Business Income |
||
Contracts entered into during the period: |
Annual Threshold |
Rate: |
Prior to 30 June 2002 |
$24,000 |
1.8% |
1 July 2002 to 30 June 2003 |
$52,000 |
1.8% |
1 July 2003 to 30 June 2007 |
$72,000 |
1.8% |
1 July 2007 to 30 June 2008 |
$72,000 |
1.2% |
1 July 2008 to 30 June 2009 |
$72,000 |
0.6% |
Contracts entered from 1 July 2009 |
NIL |
|
Equipment Financing Arrangement |
||
Contracts entered into during the period: |
Annual Threshold |
Rate |
Prior to Oct 2003 |
NIL |
1.8% |
1 October 2003 to 30 June 2007 |
NIL |
0.75% |
1 July 2007 to 30 June 2008 |
NIL |
0.5% |
1 July 2008 to 30 June 2009 |
NIL |
0.25% |
Contracts entered from 1 July 2009 |
NIL |
|
FURTHER INFORMATION
Location
RevenueSA
State Administraion Centre
200 Victoria Square East
ADELAIDE SA 5000
Telephone
(08) 8204 9888
Website
Postal
Commisioner of State Taxation
RevenueSA
GPO Box 1353
ADELAIDE SA 5001
Facsimile
(08) 8226 3805
4/5/2007
COMMISSIONER OF STATE TAXATION
