The 2026-27 South Australia State Budget was handed down by Treasurer, the Hon. Tom Koutsantonis MP, confirming a fiscally conservative approach with a clear emphasis on stability in taxation settings under the Premier’s broader economic agenda.

As anticipated, the Budget contains no new tax increases across key state taxes. Instead, it reflects a deliberate focus on cost containment, targeted relief and cost-of-living measures, rather than expanding the state’s revenue base.

For businesses and investors, the significance of this Budget lies not in what has changed, but in what has remained consistent. The confirmed absence of payroll tax reform, land tax adjustments and new indirect taxes reinforces a predictable operating environment at a time when policy certainty remains highly valued.

State tax settings – Stability maintained

The South Australian Government has confirmed no new broad-based tax increases in the 2026 State Budget. Payroll tax settings, land tax thresholds and indirect taxes remain unchanged. No new state-based research and development tax incentives have been introduced, reinforcing a continuation of existing tax policy settings.

This approach provides businesses and investors with a stable and predictable tax environment. The absence of new or increased taxes avoids additional cost pressures and supports forward planning. However, it also signals that structural tax reform has not been progressed in this budget cycle.

BDO Comment

The decision to maintain existing tax settings reflects a deliberate preference for fiscal stability over reform. While some stakeholders may have anticipated targeted adjustments, the absence of change provides certainty at a time when businesses are managing broader economic pressures and reduces the risk of unexpected cost increases. At the same time, it suggests that more substantive change has been deferred rather than dismissed. From a policy perspective, this approach aligns with a focus on managing debt through cost containment rather than revenue expansion, reinforcing confidence in the state’s fiscal discipline.

Targeted stamp duty relief – Specific support announced

The State Budget introduces a stamp duty exemption for domestic, family and sexual violence survivors, as well as access to the First Home Owner Grant (including where they have previously owned property).

The measure provides meaningful financial relief to eligible individuals seeking to access housing, reducing upfront costs associated with property transactions. However, its targeted nature means it does not materially alter broader property market dynamics or the overall structure of state-based transaction taxes.

This builds on other, separate targeted stamp duty concessions announced earlier this year, which apply to South Australians aged 60 and over purchasing a smaller, newly built home or off-the-plan apartment from 25 March 2026, for properties valued up to $2 million.

BDO Comment

The Government’s stamp duty relief demonstrates a targeted use of the tax system to achieve a specific social outcome. While limited in scope, it reflects a broader policy direction towards focused interventions rather than broad-based reform. For the wider business and investment community, the key takeaway is that the Government is not currently using stamp duty as a lever for broader economic stimulus or structural reform. Instead, targeted relief is being applied selectively. This reinforces the importance of understanding policy intent - while individual measures may be modest, they indicate a cautious and disciplined approach to changing the state’s revenue settings.

We hope, however, that the South Australian Government will leave the door open to additional measures once there is detail around trust rollovers foreshadowed in the recent Federal Budget. In particular, complementary duty relief for restructuring trusts holding land in South Australia will be critical to avoid a significant duty cost for those restructures.

Having led the country by abolishing duty on commercial property transactions, this presents an ideal opportunity for South Australia to reinforce its reputation as a leader in tax innovation and reform.

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