This article was written by Leah Ranie, Anastasia Kozyreva & Karen McDonald.
The New South Wales Government’s 2016-17 Budget was released today and confirms the abolition of the following taxes from 1 July 2016:
- mortgage duty;
- transfer duty on unlisted marketable securities; and
- transfer duty on non-real business assets.
In addition, as anticipated, the Budget introduced surcharges and related amendments to stamp duty and land tax levied on investments in NSW residential property by foreign investors, in particular:
- a foreign investor surcharge of 4% on the stamp duty payable on purchases of residential-related property by foreign persons will apply from 21 June 2016;
- the up-to-12-month deferral of stamp duty liability available for off the plan purchases of residential real estate for foreign persons will be abolished from 21 June 2016;
- a surcharge land tax of 0.75% will be levied on the taxable value of all residential land owned by foreign persons at midnight on 31 December of any year (commencing on 31 December 2016).
Other changes of significance include:
- the increase of certain payroll tax rebates;
- proposals to progressively decrease NSW wagering tax rates to achieve racing tax parity with Victoria by 2020-2021; and
- proposals to introduce a $1 levy on all point-to-point transport trips by taxis and booking companies.<