As a result of changes to the Stamp Duties Act 1923 (SA) (Act) applying from 15 September 2026, transfers of vacant land in SA will be liable to duty if the land can be developed for residential purposes – even if it can also be developed for non-residential and non-primary production purposes.*
In South Australia, the conveyance or transfer of land – that is not used for primary production or residential purposes (“qualifying land”) – is stamp duty free.
Developers have often relied on that exemption when purchasing vacant development sites, where the zoning of vacant land under the Planning and Design Code has allowed a non-primary production or non-residential use.
From 15.09.26, however, a conveyance or transfer of “vacant land” or “land that is vacant with only minor improvements”, in a zone that allows the land to be used for a residence or other accommodation, will no longer be a transfer of qualifying land despite the fact that the zoning may also allow use for non-residential purposes.
The new rules are also intended to include land developed and rented as “short stay accommodation”, such as land rented through Airbnb™ or Stayz™.
RevenueSA treats land as being residential or primary production land if it is coded with a land use code (LUC) within one of a number of categories.
The Stamp Duties Act now specifically excludes the following from being treated as used for residential purposes: (a) land used for purpose-built student accommodation; and (b) land with specific LUCs including hotels, motels, serviced apartments, short term accommodation – multiple units, sanatoria, nursing homes, convalescent and rest homes, and health centres.
Position where intended that vacant land be used for qualifying purpose
In certain circumstances, an application can be made for: (1) exemption from duty, at or before the time of the conveyance or transfer; or (2) a refund of duty, if it is made within 3 years of the conveyance or transfer (or 5 years if the Commissioner so determines) (relevant period).
Exemption before settlement
An exemption can be obtained if a person, who is liable to pay duty, makes a declaration to RevenueSA that the vacant land will be developed for a predominant purpose that would result in it being “qualifying land” within the relevant period – but the Commissioner may revoke the exemption (and impose penalties and interest) if the land is not developed within the relevant period or if the applicant has provided false or misleading information.
Refund after development
Alternatively, the Commissioner may issue a refund if duty has been paid on a conveyance or transfer of vacant land, and the person who paid the duty applies for a refund and provides evidence the land was, within the relevant period, developed for a predominant purpose that would result in it being qualifying land.
Special position with pre-15 September 2026 transactions
Transitional provisions provide that the amendments apply prospectively and retrospectively, and state that:
- duty paid on a transfer of vacant land before 15.09.26**, is taken to have been paid in accordance with the Act and there is no eligibility for a refund;
- any assessment, decision or determination made under the Act before 15.09.26, for a transfer of vacant land before 15.09.26, is not to be subject to any re-assessment, review, objection or appeal;
- any assessment, decision or determination made, or objection determined under the Tax Administration Act 1996 before 15.09.26, for duty on the transfer of vacant land before 15.09.26, is not to be subject to any re-assessment, review, objection or appeal; but
- the transitional provisions do not affect proceedings commenced, or an objection made, before 15.09.26***.
The transitional provisions are clearly intended to restrict objection and appeal rights for vacant land assessments issued before the Amending Bill was introduced into Parliament on 15.09.26, despite the fact that many vacant land assessments should have qualified for an exemption under the law as it stood before the Amending Bill.
Foreign persons
A foreign purchaser, who acquires vacant land in a residential zone will, in addition to stamp duty, be liable to pay the foreign ownership surcharge (currently 7%).
Comment
The new exemption and refund provisions will only allow an exemption from stamp duty to developers who have purchased or propose to purchase vacant land where the intention is to develop the land for non-residential use, and the land is actually developed for that purpose within the prescribed period. Where the vacant land is to be used for residential or other accommodation purposes, the new rules deny any exemption from 15.09.26, and effectively deny any objection or appeal rights on any vacant land assessments issued before that date.
If you would like to discuss any of the issues raised in this Client Alert in greater detail, please do not hesitate to contact one of the Finlaysons lawyers listed in the contact section below.
Footnotes:
- * Stamp Duties (Residential Purposes and Residential Land) Amendment Act 2026 (SA) (“Amending Act”).
- ** The Amending Act operates from 15.09.26, being the day on which the Bill for the Amending Act was introduced into the House of Assembly.
- *** However, as noted in Hansard, all objections lodged before 15.09. 26 were decided on the morning on 15.09.26, and therefore there were no outstanding objections at the time that the Bill was presented to Parliament.
