Stamp duty loophole closed to big business

10/8/00
A State tax loophole that has let big business avoid millions of dollars in stamp duty on property deals has been closed off by the Minister Assisting the Treasurer, Graham Kierath.
Mr Kierath announced today that Cabinet had approved a number of amendments to the Stamp Act to counter avoidance arrangements not available to the wider community.
"It is not fair that while families are paying stamp duty on the purchase of their homes, big business has found a way of acquiring high value assets and paying little or no duty," he said.
"Obviously those who are currently benefiting from the avoidance schemes will complain about the changes, but I suggest the wider community will see it fair that if they have to pay so should big business."
The avoidance arrangements being targeted by the amendments involve avoiding stamp duty by using company structures to convey high value property to buyers.
Mr Kierath said the arrangements were particularly prevalent in high value commercial property and mining assets and cost the State millions of dollars in lost revenue that the wider community had to carry.
"It places a greater burden on people who fairly pay their tax obligations and results in a serious loss to the State's finances," he said.
"The amendments will go through the legislative process but that will include their enforcement being retrospective to today to prevent anyone taking advantage of the delay between the announcement and the legislation."
The latest amendments follow similar provisions inserted in the Stamp Act in the late 1980s but which have since had reduced effectiveness as new avoidance techniques have been developed.
Media contact: Zac Donovan (08) 9213 6400