South Australian 2026 State Budget Brief
South Australian Treasurer Stephen Mullighan yesterday unveiled the 2025-26 state budget. To assist you, the experts at Bentleys SA have analysed what this might mean for you and your business.
Overview:
The Labor government continues with its promise of no new taxes and no changes to existing taxes in this South Australian State Budget.
Some of the relevant areas of other government spending for FY25-26 are:
- $74m drought support package for farmers;
- $20m for businesses for investing in energy efficient equipment: Grants from 2.5k to $75k will be available for application from July 2025;
- $50m for a new early-stage venture capital fund;
- $5m in support services and trade missions for business impacted by global trade in light of tariffs and trade environment;
- $3m to support dairy farmers impacted by Beston Food collapse: Grants are available to businesses listed as creditors in the liquidation process.
- $2.4bn combined federal/ state initiative to support Whyalla Steelworks
- Support for students with cheaper public transport and reduced material levies
- $270m to RenewalSA to deliver the Playford alive residential development project;
- $104m to RenewalSA to deliver the Southwark residential development.
State Tax Comments:
Payroll Tax
No changes to payroll tax is welcome for SA businesses. Unfavourable interpretations in recent years in relation to taxation of medical practices and potential impacts on broader labour hire arrangements (such as in the gig economy) have created uncertainty when engaging a workforce. This is still an evolving area and businesses should continue to review their labour contracting arrangements to ensure compliance.
Land Tax
Although there are no new land tax measures, the land tax thresholds are indexed each year. The 2025-26 rates have been released concurrently with the budget:
| Total Taxable Site Value | Amount of Tax |
|---|---|
| Does not exceed $833,000 | Nil |
| Exceeds $833,000 but not $1,338,000 | $0.50 for every $100 or part of $100 above $833,000 |
| Exceeds $1,338,000 but not $1,946,000 | $2,525 plus $1.00 for every $100 or part of $100 above $1,338,000 |
| Exceeds $1,946,000 but not $3,116,000 | $8,605 plus $2.00 for every $100 or part of $100 above $1,946,000 |
| Exceeds $3,116,000 | $32,005 plus $2.40 for every $100 or part of $100 above $3,116,000 |
We are still seeing a lot of errors in land tax assessments with incorrect grouping of entities, incorrect grouping of properties and incorrect classification of properties (e.g. principal place of residence). Where you hold properties within your groups, we recommend you review your land tax assessments to ensure the correct rates have been applied.
Land Duties
SA continues to benefit from no duty on commercial property transactions. This measure puts SA in a competitive advantage to other States when businesses are looking to restructure their property holdings. We have seen a tightening of concessions in other States which has made the cost of business restructures in those states increase.
Increasing residential property prices have carried with it an increasing duty burden. Particularly in the property development space, there can be the risk of multiple imposts of duty on the same property deals. Property owners need to be aware of these risks and seek appropriate advice before settling on a property and structuring a property transaction.
We recommend you speak to your Bentleys advisor should you need any assistance with managing the cost of doing business in SA.
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Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.
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