Concessional duty on purchases of off‑the‑plan apartments
71DB Concessional duty on purchases of off‑the‑plan apartments
If on an application under this section, in a manner and form determined by the Commissioner and supported by such evidence as the
Commissioner may require, the Commissioner is satisfied that the applicant is a purchaser of a qualifying apartment under a qualifying off‑the‑plan contract, this section applies to a conveyance under which the interest in the apartment is transferred to the applicant.
The duty payable on a conveyance to which this section applies will, if it gives effect to a qualifying off‑the‑plan contract entered into between the prescribed date and 30 June 2014 (both dates inclusive), be as follows:
where the market value of the apartment does not exceed
$500 000—no duty will be payable;
where the market value of the apartment exceeds
$500 000—the duty will be the amount payable apart from this section less $21 330.
The duty payable on a conveyance to which this section applies will, if it gives effect to a qualifying off‑the‑plan contract entered into between 1 July 2014 and 30 June 2017 (both dates inclusive), be as follows:
where the market value of the apartment does not exceed
$500 000—the duty will be calculated by reference to a value (the
dutiable value), rather than the market value, where the dutiable value is calculated in accordance with the following formula:
where—DV is the dutiable value
MV is the market value
C is a 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—
where—
Stage 1 equals 0%; and
Stage 2 equals 20%; and
Stage 3 equals 40%; and
Stage 4 equals 60%; and
Stage 5 equals 80%; and
Stage 6 equals 100%; and
where—
Stage 1 is where no work in relation to the building has been commenced; and
Stages 2, 3, 4 and 5 are construction stages determined by the
Commissioner from time to time and published in the Gazette; and
Stage 6 is where the work has been substantially completed;
where the market value of the apartment exceeds
$500 000—the duty will be the amount payable apart from this section but after taking into account the operation of subsection (4), less 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, being, depending on the stage, an amount as follows:
Stage 1—$15 500;
Stage 2—$12 800;
Stage 3—$9 750;
Stage 4—$6 500;
Stage 5—$3 250;
Stage 6—$0, where the stages will be the same as the stages applying under paragraph (a).
For the purposes of this section, the date of the conveyance of the property applying under section 60A in relation to a conveyance under this section will be taken to be the date on which the relevant qualifying off‑the‑plan contract was entered into.
For the purposes of this section, only 1 application may be made in relation to a qualifying apartment (and, in the case of an apartment being purchased by 2 or more purchasers, any benefit arising under this section must be shared jointly).
This section does not apply in relation to—
a contract entered into before 20 June 2016 if the Commissioner is satisfied that the contract replaces a contract made before the prescribed date for the purchase of the same apartment; or
a contract entered into on or after 20 June 2016 if the
Commissioner is satisfied that the contract replaces a contract made before that date for the purchase of the same apartment, unless the replaced contract—
was for the purchase of an apartment that is (or is to be) situated in Area A or Area B and was entered into after the prescribed date;
and
is not a contract referred to in paragraph (a).
In this section—
apartment means a self‑contained residence that is, or is to be, situated in a multi‑storey residential development, but does not include a townhouse;
Area A means—
the area of The Corporation of the City of Adelaide;
and
the area constituted by any land within the area where the
Bowden Redevelopment project is being undertaken (Bowden Village) and identified by the Treasurer by notice in the Gazette on
13 December 2012 at pages 5518 to 5525 (inclusive);
and
the area constituted by the land within the area known as
45 Park, Gilberton, and comprised within Certificate of
Title Register Book Volume 5114 Folio 927 or Volume 5114
Folio 955;
Area B means—
the area bounded by the thick black line on the map set out in
Schedule
3, other than any part of that area that is within
Area A; and
an area constituted by sites contiguous with the area described in paragraph (a) (being sites that include land that runs immediately along the outside of the boundary constituted by the thick black line on the map set out in
Schedule
3);
multi‑storey residential development means a building of 2 or more storeys containing 2 or more independent residential premises;
prescribed date, in relation to a particular contract entered into before 20 June 2016, means—
in the case of a contract that relates to an apartment that is (or is to be) situated within Area A—31 May 2012;
and
in the case of a contract that relates to an apartment that is (or is to be) situated within
Area B—28 October 2013;
qualifying apartment means—
in the case of an apartment purchased under a contract entered into before 20 June 2016—an apartment that is (or is to be) situated in Area A or Area B; and
in the case of an apartment purchased under a contract entered into on or after 20 June 2016—an apartment that is (or is to be) situated anywhere in the State;
qualifying off‑the‑plan contract means a contract for the purchase of an apartment entered into between the prescribed date and 19 June 2016 (both dates inclusive) or between 20 June 2016 and 30 June 2017 (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—
is a new building that is yet to be constructed; or
is a new building for which construction has commenced and where the Commissioner is satisfied that the work has not been substantially completed; or
is an existing building where the Commissioner is satisfied that the building is to be substantially refurbished and that refurbishment—
is yet to be commenced; or
has commenced but the Commissioner is satisfied that the work has not been substantially completed;
relevant contract date means the date on which the qualifying off‑the‑plan contract that is relevant to the application of this section was entered into;
townhouse means a dwelling consisting of 2 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.
This provision refers to the regulations (prescribed date
). Made under this Act:
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