The concession provides a full stamp duty concession on a transfer of a new apartment or substantially refurbished apartment for a contract entered into from 31 May 2012 to 30 June 2014 (capped at stamp duty payable on a $500 000 apartment) and a partial concession from 1 July 2014 to 30 June 2016.
For contracts entered into between 31 May 2012 and 27 October 2013 (inclusive), the concession only applies to purchases of off-the-plan apartments located:
For contracts entered into between 28 October 2013 and 30 June 2016 (inclusive), the concession applies to purchases of off-the-plan apartments located within the defined area (shown in the map below) and to sites that are contiguous to that area.
This concession replaces the Inner City Rebate. Contracts entered into on or before 30 May 2012 may be eligible to receive the Inner City Rebate. See Information Circular 45 for further details.
CONTRACTS ENTERED INTO BETWEEN 31 MAY 2012 AND 30 JUNE 2014
No stamp duty will be payable on the purchase of apartments (in the eligible area) bought through a qualifying off-the-plan contract entered into between 31 May 2012 to 30 June 2014 (both dates inclusive) where the apartment has a market value of $500 000 or less.
Where an apartment purchased via a qualifying off-the- plan contract has a market value greater than $500 000, the purchaser will be entitled to a stamp duty concession of $21 330.
|Example||Apartment purchased for||$700 000|
|Normal duty||$32 330|
|Less concession||$21 330|
|Duty payable||$11 000|
A calculator is available to determine the stamp duty payable and concession that could be applicable.
CONTRACTS ENTERED INTO BETWEEN 1 JULY 2014 AND 30 JUNE 2016
A partial stamp duty concession will be available for off-the-plan apartments purchased pursuant to qualifying off-the-plan contracts entered into between 1 July 2014 to 30 June 2016 (both dates inclusive).
Market Value $500 000 or less
For qualifying off-the-plan contracts with a market value of $500 000 or less, stamp duty will be payable on the dutiable value as defined. The dutiable value will vary depending on the stage of completion of the residential development.
The deemed unimproved land value of an apartment will be set by the legislation at 35% of the market value of the apartment, with the value of construction to reflect the nature of works already performed.
In these cases the duty will be calculated under the following formula:
DV = (MV x 0.35) + (MV x 0.65 x C)
|DV||=||The dutiable value|
|MV||=||The market value|
|C||=||The percentage that represents the stage at which the construction or refurbishment of the multi- storey residential development in which the relevant apartment is (or is to be) situated has reached at the relevant contract date, expressed as a percentage of completion of the work, those stages being:|
|Stage 1||Stage 2||Stage 3||Stage 4||Stage 5||Stage 6|
Stages of completion were published as a Notice in the Gazette on 5 June 2014 (page 2238). The stages are:
|Stage 1 is where no work in relation to the building has been commenced (0%).|
|Stage 2 is where the apartment's floor slab has been poured and external walls have been erected (20%).|
|Stage 3 is where the apartment's internal frame walls have been erected and the first fix plumbing and electrical has been completed (40%).|
|Stage 4 is is where the apartment's wall and ceiling linings have been completed (60%).|
|Stage 5 is is where the apartment's joinery, tiling and second fix carpentry has been completed (80%).|
|Stage 6 is where the work has been practically completed and the apartment is ready for occupation (100%).|
|Example||Apartment purchased for $450 000, construction of the multi-storey apartment is 40% complete|
|DV||=||($450 000 x 0.35) + ($450 000 x 0.65 x 0.4)|
|=||($157 500) + ($117 000)|
Stamp duty applicable is $10 118.75
Market Value Over $500 000
Where the market value of the apartment exceeds $500 000, the duty chargeable will be the duty payable under Schedule 2 at the date of sale, reduced by an amount determined according to the stage at which the construction or refurbishment of the multi-storey residential development in which the relevant apartment is (or is to be) situated has reached at the relevant contract date.
The Schedule 2 amounts by which duty will be reduced at each stage are as follows:
|Stage 1||Stage 2||Stage 3||Stage 4||Stage 5||Stage 6|
|$15 500||$12 800||$9750||$6500||$3250||$0|
|Example||Apartment purchased for||$600 000|
|Normal duty||$26 830|
|Less concession (for stage 2)||$12 800|
|Duty payable||$14 030|
For the purposes of the concession, the legislation deems the date of sale of the property that will apply under Section 60A to be the date on which the relevant qualifying off-the-plan contract was entered into.
The market value of an apartment for the purposes of this concession is therefore the consideration set out in the relevant contract, unless the Commissioner is of the view that the consideration is less than the market value of the apartment.
In these cases the Commissioner may seek an independent valuation to determine the market value of the apartment as of the date of the contract.
Only one application may be made in relation to a qualifying apartment and therefore, in relation to an apartment being purchased by two or more purchasers, any benefit arising under the concession should be shared jointly.
A qualifying contract is a contract for the purchase of an apartment entered into between 31 May 2012 and 30 June 2016 (both dates inclusive) where, at the time that the contract is entered into, the building in which the apartment is (or is to be) situated:
A qualifying apartment is an apartment that is (or is to be) situated:
CONTRACTS ENTERED INTO BETWEEN 31 MAY 2012 AND 27 OCTOBER 2013 (INCLUSIVE)
CONTRACTS ENTERED INTO BETWEEN 28 OCTOBER 2013 AND 30 JUNE 2016 (INCLUSIVE)
Developments within the defined area (see map above) and to sites that are contiguous to that area.
An apartment is a self-contained residence that is, or is to be, situated in a multi-storey residential development, but does not include a townhouse.
A townhouse is considered to be a dwelling consisting of two or more storeys where the building (which may be a building joined to another building or buildings) constituting the dwelling occupies a site that is held exclusively with that building.
A multi-storey residential development is a building of two or more storeys containing two or more independent residential premises.
A relevant contract date is the date on which the qualifying off-the-plan contract that is relevant to the application of this section was entered into.
Registered RevNet users can process the concession on RevNet under the document type:
Concessions/Rebates - Off-the-Plan-Concession - Conveyance of Land
For non RevNet users, submit the memorandum of transfer and a copy of the Contract for Sale and Purchase of the property for assessment at the counter together with the completed Stamp Duties Lodgement Form and Application for Stamp Duty Concession on the Purchase of an Off-the-Plan Apartment.
Please allow one full business day for processing.
Enquiries should be directed to: Taxation Services – Assessing and Taxpayer Assistance
GPO Box 1353
ADELAIDE SA 5001.
Telephone: (08) 8226 3750 or Free Call 1800 637 778 or or email: email@example.com