This session presents a draft set of 16 proposals for State Taxes reform, circulated for discussion and practitioner feedback before being finalised. These reforms aim to modernise South Australia’s tax administration by drawing on proven ATO systems and best practices, with the goal of creating a more consistent, efficient and equitable framework across jurisdictions.
South Australia’s tax system contains several areas in urgent need of reform and simplification. Participants will use this session to deepen their understanding of state tax mechanisms, share practical insights, and assess the potential impact of the proposed reforms.
Summary of Proposals
- 6-Month Objection Deadline (“silence = yes”): Require a decision within six months or deem the objection allowed.
- Payroll Tax Grouping Reform: Target grouping to genuinely related businesses, limit automatic joint liability, and streamline de-grouping.
- Single Charity Definition: Align SA’s definition with the ACNC/Charities Act for consistent concessions.
- Modern GAAR: Replace outdated anti-avoidance rules with a Part-IVA-style dominant-purpose framework.
- SACAT Merits Review: Provide low-cost, accessible tribunal review, with court appeals limited to questions of law.
- Private Binding Rulings: Establish an ATO-style binding rulings regime for upfront certainty.
- Rewrite the Stamp Duties Act: Replace the 1923 instrument-based Act with a modern, plain-English, transaction-based Duties Act.
- Start Clocks at Self-Assessment: Deem self-lodged returns to be assessments that start objection and amendment time limits.
- Remove the 50% Prepayment Rule: End the need to prepay 50% of disputed tax before an appeal; rely on interest/security instead.
- Longer Objection Windows: Permit objections at any time within the Commissioner’s amendment period.
- Self-Assess Land Tax: Transition to a self-assessment model supported by tools and data.
- Independent Expert Counsel: Engage specialist tax barristers for complex matters.
- Duty Relief for Reconstructions: Exempt restructures where ultimate beneficial ownership is unchanged.
- Anti-Overtaxing Remedial Power: Provide a targeted mechanism to correct unintended over-taxation.
- Hardship and Payment Plans: Establish a formal hardship process and flexible instalment arrangements.
- Statutory Error Rectification: Create a mechanism for retrospective correction of genuine taxpayer or agent mistakes.
Please see below link to case materials which is assumed reading in order to participate in the discussion:
Improving South Australian Taxation Administration: Lessons From the ATO
Discussion led by Adrian Cartland