New residential land rules apply from 15 September 2026 and may bring some previously duty-free property transactions into the stamp duty net.

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THE KEY POINT

The changes do not introduce a new stamp duty rate. However, land that may previously have qualified for duty-free treatment can now be dutiable. Check how the land will be classified and allow for possible stamp duty before signing transaction documents.

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South Australia has changed how land is classified as “residential” for stamp duty purposes. Commercial and other “qualifying land” is generally not subject to stamp duty, while residential and primary production land remains dutiable. The classification can therefore determine whether full duty is payable.

The changes at a glance

• Vacant land is now more likely to attract stamp duty, even where the purchaser intends to undertake a commercial development.
• Improved land may be treated as residential where the improvements are residential in character, despite a current business use.
• Relief may be available where vacant land is developed for a qualifying non-residential purpose within the required period.

Vacant land: the most significant change

Vacant land, or land with only minor improvements, may now be treated as residential where its zone or subzone permits use for a residence or other accommodation. This can apply even if the planning rules also allow commercial or other non-residential uses.

Example

A purchaser buys vacant land in a mixed-use zone intending to build shops. If the zoning also permits apartments or other accommodation, the purchase may now attract stamp duty.

Land with buildings

The amendments also broaden the circumstances in which improved land may be treated as residential. Particular care may be required where the improvements are residential in character, even if the property is currently used for another purpose, such as a former house used as professional rooms or a medical clinic.

Specific exclusions can apply, including for purpose-built student accommodation and certain land-use categories such as hotels, motels, serviced apartments, specified short-term accommodation and nursing homes. The classification should be checked for each property.

Relief for qualifying business development

A purchaser proposing genuine development for a qualifying non-residential purpose may be able to seek an upfront exemption or claim a refund after the development requirements are met.

	Refund	Upfront exemption
When to apply	After purchase and payment of duty	At or before the transfer
What is provided	Evidence that the required development has occurred	A declaration of the intended qualifying development
General deadline	3 years, or up to 5 years if the Commissioner allows	3 years, or up to 5 years if the Commissioner allows
Key risk	Duty remains paid until the refund is approved	Duty, interest and penalty tax may become payable if the requirements are not met

 

Important: the land must be developed for a qualifying purpose within the required period, and that purpose must be the first new predominant purpose for which the land is developed. A change in use alone, or a division of the land, is not treated as development for this relief.

Transactions around 15 September 2026

The vacant land amendments have retrospective elements and may affect some transactions entered into before 15 September 2026. The legislation also contains provisions dealing with earlier assessments and duty already paid. Transactions around the commencement date should be reviewed individually rather than assuming the previous treatment continues to apply.

The changes concerning improved land apply from 15 September 2026.

Foreign purchasers and company or trust acquisitions

The changes can also affect the 7% foreign ownership surcharge and landholder duty on acquisitions of shares or units in companies or trusts that hold South Australian land. These consequences should be considered before signing transaction documents.

What to do before you sign

• Obtain current planning and property-use information for vacant, mixed-use or improved land.
• Allow for possible stamp duty in the transaction budget and cash flow forecast.
• If a qualifying business development is intended, ask your solicitor or conveyancer about the upfront exemption before settlement and test whether the development timetable is realistic.
• Do not assume that a change of use, planning approval or subdivision will be enough to obtain development relief.
• Review transactions entered into around 15 September 2026, particularly vacant-land acquisitions and acquisitions of interests in land-owning companies or trusts.
• Foreign purchasers should obtain advice on whether the revised classification affects the 7% foreign ownership surcharge.

How Holman Hodge can help

Planning a purchase, development or restructure?

We can help you understand how the changes may affect the commercial and cash flow aspects of a proposed transaction. We can also work with your solicitor or conveyancer to identify the information needed to assess the land classification and any available relief.

Please contact your Holman Hodge adviser to discuss your circumstances.

Important information

This client alert provides general information only and does not constitute legal advice. The application of the stamp duty rules depends on the particular land, transaction, planning controls and development arrangements. Please obtain advice from a suitably qualified solicitor or conveyancer before acting.