The New South Wales (NSW) Budget released yesterday confirms a number of already announced tax measures to take effect for the 2016/17 year:
- introduction of 2 foreign resident surcharges expected to raise approximately $1billion over that period:
- a 4 percent surcharge for foreign purchasers of residential property; and
- a 0.75 percent surcharge for foreign owners of all NSW land
- the abolition of marketable securities duty, mortgage duty and business asset transfer duty with an expected cost of $1.8bn over 4 years (this is in fulfillment of commitments originally made in connection with the introduction of the goods and services tax (GST))
- introduction of a $1 levy on “point to point transport” to partly fund assistance to licence owners, to adjust to the new framework for the taxi, hire car and rideshare industry
The new foreign resident measures will also limit access to off-the-plan duty deferral concessions to residents only, bringing forward revenue on affected transactions in a one off benefit to the Revenue.
Abolition of the current Emergency Services Levy on insurance in favour of an Emergency Services Property Levy from 2017 will also bring NSW in line with other mainland states.