Stamp duty—often a significant expense in property transactions—can sometimes be avoided, offering substantial savings under the right conditions. Since July 2018, certain property transfers have become exempt from stamp duty, but it’s important to understand the specifics to see if you could benefit.
What is Qualifying Land?
Introduced in the legislative changes of July 2018, “Qualifying Land” refers to non-residential or non-primary production land. This includes commercial properties, which have emerged as the primary beneficiaries of these changes. Properties eligible under this category do not incur stamp duty, which can lead to considerable financial savings for buyers and investors.
The Evolution of Stamp Duty Exemptions
The path to eliminating stamp duty on Qualifying Land wasn’t overnight. It began with gradual reductions in December 2015, followed by further cuts in July 2017, culminating in the complete removal in 2018. This progressive reduction has made commercial property transactions more straightforward and less costly.
Is There a Catch?
While the exemption offers clear benefits, it applies strictly to Qualifying Land. Residential properties and lands used for primary production are still subject to stamp duty. For those looking to purchase Qualifying Land, the primary costs will be the Transfer Registration Fee, which is determined by the purchase price listed in the contract or a current property valuation.
Future Prospects
As of now, no new fees or charges have been introduced to replace stamp duty for Qualifying Land transactions. However, it’s essential to stay informed through reliable sources like Revenue SA to catch any future legislative changes that could affect your property dealings.
How Can We Help?
If you’re considering a property transaction and wondering about your stamp duty obligations, or if you need more detailed information on what constitutes Qualifying Land, don’t hesitate to reach out. Our experienced conveyancers can provide you with expert advice and ensure that your property transfers are handled efficiently and compliant with current laws.
Contact us today to learn more about how you can benefit from stamp duty exemptions on your next property investment.
