The Treasurer has announced changes that extend and expand the stamp duty concessions available for off-the plan apartments
Increasing the incentive: SA Budget extends and expands stamp duty concessions.
The 2016-17 SA Budget has delivered welcome news to property developers and investors alike, announcing:
- an extension of the stamp duty concession of up to $15,500 for off-the-plan apartments for a further year (until 30 June 2017); and
- an expansion of the scheme to apartments anywhere in South Australia (beyond the previous CBD and inner suburban boundary).
Some industry experts had expected for some time that the Treasurer would extend the off the plan stamp duty concession for a further financial year. The announcement that the regime would be expanded to apartments anywhere in South Australia, whilst unexpected, but welcomed by the property sector.
According to budgetary figures, 585 homebuyers have accessed the scheme over the last year. Additionally, the South Australian Government continues to offer the $15,000 First Home Owner Grant for new homes. Coupling these initiatives together allows first home buyers to access $30,500 to purchase an apartment anywhere in South Australia.
This announcement is expected to assist in the growth of the largest private sector in South Australia; promoting job growth, driving investment and complementing the urban in-fill policy objectives of the South Australian Government.
The changes were welcomed by the Property Council of Australia SA Executive Director, Daniel Gannon who noted “extending stamp duty concessions for off-the-plan apartments and expanding it statewide will stimulate the property sector and those who work within it. Budget stimulus measures like extending stamp duty concessions for off-the-plan apartments are strongly welcomed by developers, investors and particularly first home buyers.”
Cowell Clarke has significant experience in dealing with off-the-plan residential apartment developments and can assist in all legal and conveyancing aspects of the development (including preparation and registration of divisional documents, by-laws and scheme description, preparation of Form 1 Vendor Statements and preparation and negotiation of contract documentation).