On 19 September 2023, the New South Wales government released its 2023/24 budget and in doing so it made a number of significant revenue announcements which are all aimed at increasing government revenue and reducing concessions/exemptions for taxpayers. Together with some measures that had been announced ahead of the budget, we outline the key changes likely to impact businesses which include:
Many of these amendments are being introduced in the Treasury and Revenue Legislation Amendment Bill 2023 (NSW) (the Bill). Further details on these announcements are outlined below.
Tax laws are becoming more complex and taxes are increasing for taxpayers operating in NSW. The Chief Commissioner is gaining more control over the remission of interest and more taxpayers will now be liable to pay landholder duty. The changes to EVs are contrary to encouraging taxpayers to move to more efficient vehicles.
Any taxpayers contemplating internal transfers of dutiable assets should consider bringing forward any applications for CRE and subsequent transfers to ensure the transfers occur without any duty being payable. After 1 February 2024, 10% of the duty otherwise payable will be incurred, which may be prohibitive to undertaking the internal restructure. Given duty will soon be payable, it also means that taxpayers will now need to incur the cost of obtaining a valuation for internal asset transfers, as the Chief Commissioner will likely want to ensure he is receiving 10% of the unencumbered market value of the assets transferred. Also, from this date, further dutiable assets may be liable for landholder duty as a result of the change to the definition of a linked entity.
All of these changes will increase the cost of doing business which will inevitably impact on businesses ability to invest in projects and employ staff in NSW.
Be the first to receive the latest articles, news and publications.
Multinational groups who use intangible assets as part of their operations should be aware of two new guidance documents published by the ATO.
Foreign surcharges are payable in addition to ordinary stamp duty or land tax. Victoria and Queensland offer exemptions from the foreign surcharges for certain large organisations.
The State Taxation Acts and Other Acts Amendment Act 2023 (Vic) was eventually passed, but with a number of amendments made to the initial Bill.