2023 State Taxes Outlook

Introduction

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NSW

• First Home Buyer Choice legislation enacted https://www.nsw.gov.au/initiative/first-home-buyer-choice
• New ‘change of beneficial ownership’ dutiable transaction
• Amendments to the Taxation Administration Act 1996 including in relation to tax avoidance schemes and doubling the rate of penalty tax payable for a tax default by a significant global entity. Refer to website guidance
• New CPN 025 Change in beneficial ownership
• New CPN 027 Leases and change in beneficial ownership
• New DUT 017v2 Variations of Trust
• New DUT 031v2 Declaration of trust in an agreement for sale
• New G 013v2 Exemption from Surcharge for Certain Development by Australian Based Developers that are Foreign Persons
• New CPN 023 Exemption Approval for foreign Australian based developers
• New CPN 024 Interest and penalty tax guidelines
• Increase to foreign surcharge land tax to 4% 2023 land tax year
• KWM NSW 2022 budget update

Victoria

• Windfall Gains Tax (WGT) exemption for universities enacted (WGT to apply from 1 July 2023)
• WGT website guidance published https://www.sro.vic.gov.au/windfall-gains-tax
• New LTA-009 Land tax charity exemption
• New DA-047v3 Landholder duty - duty concession interposition unit trust between stapled security
• Draft rulings to watch:
  • Land transfer duty: Acquisition economic entitlements relation relevant land service fees
  • Land tax: Exemption Primary production land
  • Land tax: Primary production exemption for land in urban zone
• KWM Victorian budget update

Tasmania

• New Tasmanian-based foreign developers relief from foreign investor duty surcharge (FIDS) and other FIDS changes FIDS amendments factsheet 2022
• New Foreign Investor Land Tax Surcharge of 2% Foreign investor land tax surcharge factsheet
• KWM Tasmanian budget update

Queensland

• New DA000.16.3 Administrative arrangement - duty exemptions for eligible small business restructures
• Exemptions for particular duties for small business restructures enacted
• KWM Queensland budget update

Western Australia

• 2022/23 Budget announced land tax relief for build-to-rent developments announced to apply from 1 July 2023 – not enacted as yet
• Reduction of general transfer duty rate
• Removal of duty on prospecting licences and derivative mining rights
• New Duties Fact Sheet Derivative Mining Rights
• New Duties Fact Sheet Farm-in agreements
• New Commissioner’s Practice: DA 54 - Farm-in agreements
• New DA 16: Exploration for Farm-in Transactions
• New Circular 19 - Relief from duty for eligible farm-in agreements
• New Commissioner’s Practice: DA 42: Certain Transactions Involving Mining Tenements (valuation)
• New Duties Fact Sheet Business Assets
• New Duties Fact Sheet Transfer Duty Overview
• New Duties Fact Sheet Transfer of Residential Land
• New Commissioner’s Practice: DA 53 - Contingent Consideration
• New DA 19.2: Applying for a Connected Entities Exemption
• New DA 25.1: Substantially One Arrangement
• KWM Western Australia budget update

South Australia

• Update to IC 103 Stamp Duty on Conveyance or Transfers of Non-residential, Non-primary Production Real Property
• Updated Stamp duty document guide - self-determined
• Updated Stamp duty document guide - assessment by Commissioner (Opinion)
• 2021/22 Budget announcement for BTR land tax reduction to apply from 30 June 2022 – legislation still yet to be passed
• Updated Land tax publications released
• South Australian budget overview

ACT

• From 1 July 2022, commercial properties with a dutiable value of $1,700,000 or less will pay no conveyance duty
• From 1 July 2022, eligible owner-occupier transactions have a lower rate of duty and an increased lowest rate threshold
• ACT Budget at a glance

NT

• Abolition of the property activation levy from 1 July 2002, which imposed a charge on vacant land and unoccupied buildings in the Darwin CBD
• New stamp duty exemption for house and land packages and speculative builds from 1 July 2022
• KWM Northern Territory budget update