News
Issue No. 5 - April/June 2002
Stamp duty review vital to stimulate economy
A review of the State’s stamp-duty laws is a vital first step in stimulating new commercial property activity in South Australia, according to the state’s oldest commercial property firm, Knight Frank.
Don Crouch, managing director, South Australia, for Knight Frank, says that commercial transactions are being held back by the high level of stamp duty paid at settlement to the state government.
A $1 million transaction in South Australia presently attracts stamp duty of $41,000, one of the highest levels in Australia, while on a $10 million transaction, this rises to $490,000.
“If the new state government is serious about sparking activity in South Australia, it should immediately consider reforming its collection of stamp duty, prior to removing it entirely,” Don says. “Stamp duty is a significant impost which weighs down and restricts transactional activity and provides nothing in return.”
Its removal or at least its reform, could help stimulate activity in South Australia. “Property syndication is a popular investment option for smaller investors wishing to diversify their portfolios,” Don says. “Typically, this involves the purchase of a large commercial or retail property which is made available to investors through prospectus application, with entry level usually around the $10,000 mark. These syndicates mostly involve properties valued in excess of $10 million.”
The abolition o...
