Stamp duty update – Amendments to classification of “residential” land

Last week the South Australian Parliament passed the Stamp Duties (Residential Purposes and Residential Land) Amendment Bill 2026, which changes how vacant land is classified for stamp duty purposes in South Australia. Under the new framework, vacant land in a zone that permits residential use may attract stamp duty even where the land could also be developed for a non-residential purpose. The Bill will amend both the Stamp Duties Act 1923 and the Stamp Duties Regulations 2013, primarily in relation to what constitutes “residential” land attracting stamp duty, rather than exempt “qualifying” land.

The Bill is currently awaiting royal assent. However once received, the Bill will be taken to have come into operation from 16 September 2026 when it was introduced into the House of Assembly. As a result, the Bill has immediate and practical consequences for those currently in the process of acquiring land.

Since 1 July 2018, transfers of qualifying land (non-residential and non-primary production) have been exempt from stamp duty in South Australia. Residential and primary production land transfers remain subject to stamp duty. Accordingly, the classification of land as residential or primary production has a direct and significant cost impact on any real property transaction.

At its core, the Bill redraws the boundary between vacant land that is classified as residential, and vacant land that is classified as non-residential (and so qualifying), for stamp duty purposes. In practical terms, more vacant land will now be classified as residential land and therefore subject to stamp duty.

Under the old framework, vacant land in a zone that permitted any non-primary-production and non-residential use escaped classification as residential land. That escape route has now been removed, and vacant land in any zone permitting residential use will now be treated as residential land attracting duty (even where the zone would also permit a qualifying use).

The broadened classification of residential land also has implications for the foreign ownership surcharge. Foreign persons acquiring residential land may be liable for a surcharge equivalent to 7% of the value of the residential land, in addition to any applicable stamp duty.

Whilst there are also amendments relating to the classification of improved land as residential, we expect it is the changed classification for vacant land that will have the most significant transactional impact.

Yes. The Bill does provide two potential forms of relief where vacant land is acquired with the intention of developing it for a qualifying non-residential purpose: a refund or an upfront exemption.

• Refund – Where stamp duty has been paid, a party may apply for a refund if, within 3 years (or 5 years with Commissioner approval), the land has been developed for a qualifying (non-residential) purpose. The qualifying purpose must be the first new predominant purpose, and the development must be completed within the relevant timeframe. Importantly, “development” does not include simply a change in use or division of land – the land must be physically developed for a qualifying use.
• Exemption – A party may apply for an exemption from duty before the conveyance, by providing a declaration that the land will be developed for a qualifying purpose within the relevant period (3 years, or 5 years with Commissioner approval). If the development conditions are subsequently not met, the Commissioner must be notified and the exemption may be revoked, and duty becomes payable from the date of the conveyance (with the potential for interest and penalty tax).

Purchasers and developers with current or proposed acquisitions of vacant land in South Australia should review their transactions now to determine whether the new residential land classification could result in stamp duty becoming payable. Consideration should also be given to whether a refund or exemption may be available with regard to the completion timeframes for the proposed development (although it remains to be seen how those refund and exemption procedures will work in practice).

• Vacant land in a zone permitting residential use may now be classified as residential land and attract stamp duty;
• purchasers developing vacant land for a qualifying non-residential purpose may be able to access an exemption or refund; and
• the changes apply from 16 September 2026, subject to the Bill receiving royal assent.

If you have any queries about the changes, please do not hesitate to get in touch with our team.