Stamp duty error could mean hundreds of Salamanca stallholders are owed a refund

Hundreds of Salamanca Market stallholders are estimated to have been impacted by a state Treasury bungle that saw them unnecessarily pay up to $2000 each in stamp duty over 15 years. See how many are owed.

Set among the historic Georgian sandstone buildings of Salamanca Place in Hobart, this famous market attracts thousands of locals and visitors every Saturday of the year. Photo - Alastair Bett ESCAPE 15 May 2022

More than 300 Salamanca Market stallholders are estimated to have been impacted by a state Treasury bungle that saw them unnecessarily pay up to $2000 each in stamp duty over 15 years.

The State Revenue Office (SRO) has uncovered an administrative issue that resulted in stamp duty being collected in error from stallholders and has committed to investigate stall licence transactions and provide refunds “where appropriate”.

A change to stamp duty arrangements on July 1, 2008 should have marked the end of stallholders being required to pay the fee but the practice continued anyway.

Salamanca Market Stallholders Association president Emma Hope encouraged any current or former stallholder who believed they may have been affected by the error to contact the SRO to see if they were eligible for a refund.

“It really depends on the value of the site at the time it was purchased … [but they could be owed] anything from $1000 to a couple of thousand [dollars],” she said.

Salamanca Market Stallholder Association vice-president Nadia Tanase, Salamanca Market Stallholder Association president Emma Hope, and Tasmanian Tonic Company managing director Dina Gregson. Picture: Rob Inglis

“And we estimate that there’s upwards of 300 stalls that would have changed hands during that 15 years so it could amount to a significant amount of money.

“It is quite confusing and concerning that this has gone on for so long. A lot could have happened in that 15 years – maybe [some] stallholders will have passed [away] or aren’t in the country anymore and are more difficult to contact. So there’s a lot of complexity around it.

“But we do hope that those who are impacted will come forward.”

Ms Hope said the error was discovered during negotiations with the Hobart City Council over the new licence agreement for stallholders.

Tasmanian Tonic Company managing director Dina Gregson, who runs a stall at the market, said she wanted the SRO to “create a list of people for whom this is an issue, those that have been affected”.

“And then make that list available for people to look to see if they’re on it. And if they are, then to fast-track the process for us to deal with it,” she said.

“I just think creating another administrative burden by individual stallholders having to call State Revenue to ask if they actually do fall into it, I think there should be a better bureaucratic process for this to be dealt with.”

Ms Gregson said the stamp duty fees amounted to “a fairly significant amount of money for stallholders, including us”.

Small Business Minister Madeleine Ogilvie said she had been approached by Hobart councillor Louise Bloomfield about the issue and was “very supportive” of all affected stallholders seeking refunds.

“My understanding is the State Revenue Office is looking at [the matter]. I’d encourage everybody to make contact to find out what their particular circumstance is,” she said.

INITIAL, August 19, 12.01am: Salamanca stallholders who bought licences over the last 15 years are owed money for wrongly paid stamp duty, it’s been revealed, and those affected are being urged to take action if they want their money back.

For years, stallholders have been required to pay stamp duty when the buy stallholder licences, but a rule change 15 years ago meant they were no longer required to.

Despite the change, stamp duty for the licences continued to be collected in error.

Salamanca Market. Picture: Chris Kidd

“The Commissioner of State Revenue has identified an issue with the application of duty to the transfer of certain Salamanca Market stall licences where the transaction occurred after 1 July 2008,” a treasury spokesperson said.

“The Commissioner will investigate these transactions. Refunds will be issued where appropriate.

“Stallholders should contact the State Revenue Office if they require further advice or to ensure that their transaction is included in the investigation.”

The oversight was discovered after concerns were raised about the possibility of stallholders having to pay stamp duty if their stall was moved.

Alderman Louise Bloomfield has been communicating with the stallholders and the small business minister about the issue.

She believed hundreds of stallholders could be owed hundreds of dollars.

“It’s those people who have bought and sold stalls in the last [15] years that need to be aware,” Ms Bloomfield said.

Hobart City Alderman Louise Bloomfield. Picture: Chris Kidd

“It’d be a few hundred (stallholders), there are changes every year.

“The Hobart City Council was as misled as the stallholders were, no one knew … It was something that slipped through the radar.”

Ms Bloomfield was concerned there may be a slight hiccup in stallholders getting their money back.

“When you’ve made a mistake with the state revenue office you only have 60 days to apply and have them refund their money, unless there are special considerations,” she said.

“I thought rather than have 300 applications with objections, how about we go to the minister to broker a position?

“If they purchased a stall license from around [2008] onwards, they should have a bit of a look to see if there’s something there for them.

“This is all about supporting small business and being fair … It’s about making good and making right.”

Originally published as Stamp duty error could mean hundreds of Salamanca stallholders are owed a refund