Authority Updates - New South Wales - July 2016

2016 State Budget Announcement

The New South Wales (NSW) Treasurer, announced the below changes to State taxes as part of the 2016 State Budget.

These and other changes were introduced under the State Revenue Legislation Amendment (Budget measures) Bill 2016 .

Duties

The NSW Budget introduces a 4 per cent surcharge purchaser duty on the purchase of residential real estate by foreign persons to commence on 21 June 2016. The surcharge is in addition to the duty payable on the purchase of residential property.

Foreign persons will no longer be entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases of residential property.

This surcharge will also apply to landholder transactions if there is a landholder liability and one or more of the properties owned by the landholder is classified residential and the purchaser is a foreign person who purchases shares or units in the landholder.

From 21 June 2016, all transferees who are liable to pay duty in respect of a dutiable transaction must lodge a declaration in the approved form.

Land Tax

The NSW Budget introduces a 0.75% surcharge land tax of the taxable value of residential land owned by a foreign person at midnight on 31 December in any year commencing with 2016.

The tax is separately assessed in relation to each parcel of land and is payable in addition to any land tax otherwise payable by a foreign person. There is no tax threshold to exempt land below the specified value nor any exemption for land occupied by a foreign person as a principal place of residence.

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Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.