NSW Budget Overview: New tax changes effective 1 July

By Keshni Maharaj, Josh Reisler
20 Jun 2019
The New South Wales Budget Paper No. 1 and the State Revenue and Other Legislation Amendment Bill 2019 (NSW) (Bill) were introduced into the Lower House of Parliament on 18 June 2019.

The revenue-related sections of the Bill are set to commence on 1 July 2019.

No significant amendments to the existing legislation were proposed under the Budget.

Transfer duty and land tax updates

  • The rate of duty payable on dutiable transactions that occur within a period of 12 months and are aggregated and treated as a single dutiable transaction, will be the rate applicable at the time of the earliest of those transactions.
  • To better align the treatment of visa holders in New South Wales with other States, holders of an investor retirement visa (subclass 405) or a retirement visa (subclass 410) will be exempt from foreign investor surcharges on transfer duty and land tax for principal places of residence. This exemption will be made subject to any modifications prescribed by regulations under the Duties Act 1997 or the Land Tax Management Act 1956.
  • The Bill also provides for increases in the specified threshold amounts of dutiable value for the purposes of determining the general rate of duty. The increases account for the latest annual increase in the Consumer Price Index for Sydney. The lower amount (the minimum threshold amount) and higher amount (the maximum threshold amount) specified for each threshold range of dutiable value are adjustable amounts that will be subject to annual indexation.
  • The threshold amount of dutiable value in respect of which the premium property rate of duty applies will increase from $3,000,000 to $3,040,000. The threshold amount of $3,040,000 is an adjustable amount that will be subject to annual indexation.

Payroll tax updates

  • The Bill extends, from 21 to 28 days, the period for:
  • payment of payroll tax in relation to wages paid or payable in the month of June; and
  • lodging a return relating to the month of June in a financial year and the adjustment of tax paid or payable by the employer during that financial year.
  • In addition, employers will be permitted to make monthly payments of estimated payroll tax in respect of any month (except the month of June) as an alternative to making payments of tax based on wages paid or payable by the employer in the month. 

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.