2014 State budget
The New South Wales (NSW) Treasurer, the Hon. Andrew Constance MP announced the following changes to State taxes, grants and levies as part of the 2014 State Budget.
These and other changes were introduced under the State Revenue and Other Legislation Amendment (Budget measures) Bill 2014.
Abolition of Various Duties
Duty will be abolished from 1 July 2016 on:
- transfers of marketable securities and commercial fishery shares
- transfers of business assets
- transfers of statutory licences or permissions and gaming machine entitlements
- mortgage duty.
The amendments also include anti-avoidance measures, to prevent the duty from being avoided in anticipation of the abolition date.
New Home Grant
The amendments restrict eligibility for a grant under the New Home Grant Scheme to one grant per financial year. If a transferee has been paid a grant under the Scheme, for a transaction which occurred in a financial year, the transferee will not be eligible for a further grant on another transaction in that year.
The amendments restrict eligibility for a grant under the New Home Grant Scheme to transferees who are declared an Australian citizen, Australian Resident or Australian-owned body.
Australian citizen has the same meaning as in the Australian Citizenship Act 2007 of the Commonwealth.
Australian resident means: (i) the holder of a permanent visa within the meaning of section 30 of the Migration Act 1958 of the Commonwealth, or (ii) a New Zealand citizen who holds a special category visa within the meaning of section 32 of the Migration Act 1958 of the Commonwealth
Australian-owned body means a corporation or body corporate that is at least 50% owned or controlled by persons who are Australian citizens or Australian residents.
However, if a transferee is acquiring the land in a trustee capacity, the transferee is an Australian citizen, Australian resident or Australian-owned body only if at least 50% of the beneficial interest in the land is held for the benefit of Australian citizens, Australian residents or Australian-owned bodies.
The amendments also remove the time limit (which was previously 3 months) for making an application under the New Home Grant Scheme.
The amendments apply to agreements for sale or transfer entered into on or after 1 July 2014,and transfers that occur on or after 1 July 2014, other than transfers made in conformity with an agreement for sale or transfer entered into before 1 July 2014.
First Home Owner Grant (New Homes)
The amendments increase the first home owner grant cap from $650,000 to $750,000. This means that an eligible transaction that has a total value of up to $750,000 will qualify for the first home owner grant for new homes.
For more information, visit the Frequent Questions page.
Payroll Tax Rebate Scheme (Disability Employment)
The Payroll Tax Rebate Scheme (Disability Employment) Act 2011 is repealed.
The amendments provide for the continuation of the Payroll Tax Rebate Scheme (Disability Employment) Act 2011 in respect employment that commenced before the repeal of the Act.