State and territory budget snapshot – key business announcements

Every Australian state and territory has now delivered its 2024-25 state budget. Tasmania was the last – on 12 September 2024. In this snapshot, we outline the key business taxation measures announced and identify key changes announced in previous budgets that commenced on 1 July 2024.

Several notable inclusions in the 2024-25 budgets include:

• in New South Wales (NSW), foreign purchasers and owners of residential property will pay increased surcharge transfer duty and surcharge land taxes;
• in Queensland, foreign purchasers of residential property and foreign owners of all types of property will pay increased surcharge transfer duty and surcharge land taxes respectively;
• Victoria will offer a land tax exemption to entities offering social and emergency housing;
• Victoria, NSW and South Australia (SA) announced changes to the imposition of payroll tax on general practitioners in their respective states (GPs);
• the ACT announced it would introduce a new short-term rental accommodation levy;
• SA will abolish stamp duty for all first home buyers; and
• the Northern Territory (NT) had no tax or revenue announcements, and Western Australia (WA) only made one change – to stamp duty for first home buyers.

Click on your State or Territory below to view its specific new tax measures for the 2024-25 financial year.

VIC | WA | NT | SA | QLD | NSW | ACT | TAS

In chronological order of delivery date

Victoria

Victoria delivered its 2024-25 budget on 7 May 2024. In contrast to recent budgets where the government has announced the introduction of significant new taxes (e.g. the commercial and industrial property tax and the windfall gains tax), this budget was much less eventful.

Key business and taxation highlights from the 2024-25 Victorian budget and new measures previously announced which commence in 2024-25 include the following.

Payroll tax

• 12 month exemption for GPs: although not strictly a budget measure, the Victorian Government has recently announced that GP businesses will receive an exemption from any outstanding or future assessment issued for payroll tax on payments to contractor GPs for the period up to 30 June 2024. A further 12-month exemption from payroll tax for payments to contractor GPs, through to 30 June 2025, will be available for any GP business that has not already received advice and begun paying payroll tax on payments to their contractor GPs on this basis.
• The previously announced increase of the payroll tax-free threshold from $700,000 to $900,000 will commence on 1 July 2024, and then expand to $1 million from 1 July 2025.
• The 2023-24 budget announced a measure that the payroll tax threshold will be phased out for employers with Australian wages between $3 million and $5 million. Employers with Australian wages above $5 million will not receive any tax-free threshold. This measure commences on 1 July 2025.

Land tax

• Standalone land tax exemption for social and emergency housing: Victoria will introduce a standalone land tax exemption for land that is used to provide social and emergency housing. The land tax exemption will also apply to charity-owned land where social and emergency housing is under development. The exemption seeks to clarify existing arrangements that charitable landowners who provide social and emergency housing will not be liable to pay land tax.

Stamp duty

• There were no new stamp duty announcements.
• As previously announced, from 1 July 2024, insurance duty will reduce by 1 per cent each year so that it is abolished by 1 July 2033. The rate in 2024 will reduce to 9 per cent.

Commercial and industrial property tax

• In the 2023-24 budget, the Victorian Government announced that the Commercial and Industrial Property Tax (CIPT) will commence from 1 July 2024. For more information of how the CIPT will operate, see these JWS Insights:
  • ‘Victorian Commercial and Industrial Property Tax Reform Act is now law: here’s what you should know’; and
  • ‘Victorian Commercial and Industrial Property Tax detail announced’.

Other announcements

Waste levy increase: Victoria’s metropolitan industrial and municipal waste levy will be increased to $169.79 per tonne from 1 July 2025 (up from $129.27). The increase in levy rate harmonises the levy with New South Wales and South Australia.

Western Australia

WA handed down its 2024-25 budget on 9 May 2024. This budget did not include any major changes to the state’s revenue collection initiatives. Key highlights were modifications to the stamp duty exemption threshold for first home buyers and incentive payments to landowners to convert their short-term rental properties to long-term.

Payroll tax

• No payroll tax announcements.

Land tax

• No land tax announcements.

Stamp duty

• Increase in stamp duty concession thresholds: the stamp duty free threshold will be increased for first home buyers to $450,000 (up from $430,000). Properties up to $600,000 (up from $530,000) will also see small concessions in the amount of stamp duty payable. These changes are expected to be implemented by 1 July 2024. Purchasers who enter into agreements between 9 May 2024 and 30 June 2024 will be eligible for a refund.

Other announcements

• The WA Government announced that it will not proceed with its planned road user charge on zero and low emission vehicles following the High Court of Australia’s decision in Vanderstock v Victoria [2023] HCA 30 where the Court held that Victoria’s zero and low emission vehicles charge was an unconstitutional excise.

Northern Territory

The NT delivered its 2024-25 budget on 14 May 2024.

Payroll tax

• No changes to payroll tax.

Land tax

• The NT does not impose land tax.

Stamp duty

• No changes to the imposition of stamp duty.

South Australia

SA handed down its budget for 2024-25 on 6 June 2024. The key highlights are outlined below.

Payroll tax

• Bulk billing exemption for GPs: GP wages related to bulk billed services will be exempt from payroll tax from 1 July 2024. In addition, an amnesty on wages paid to certain GPs and other medical service providers to 30 June 2024 will be legislated to alleviate the administrative burden for businesses.

Land tax

• No changes to land tax.

Stamp duty

• Stamp duty abolishment for all first home buyers: the stamp duty property value thresholds will be removed for first home buyers who enter into a contract to purchase a new home or vacant land to build a new home after 6 June 2024. Previously, no stamp duty was payable on the purchase of an eligible new home valued up to $650,000, with relief phasing out up to $700,000. For the purchase of vacant land, no stamp duty was payable for land valued up to $400,000 and relief phasing out up to $450,000. The removal of these value thresholds abolishes stamp duty for all eligible first home buyers. 

Other announcements

• Small business emergency grants: as part of the Economic Recovery Fund, eligible small businesses and not-for-profit organisations may receive grants between $2,500 and $50,000 to invest in energy efficient equipment or other improvements to reduce and manage their energy use.

Queensland

Queensland delivered its 2024-25 budget on 11 June 2024. We summarise the key business and taxation measures below.

Payroll tax

• 50 per cent apprentice and trainee payroll tax rebate: the 50 per cent payroll tax rebate for wages paid to apprentices and trainees will be extended for 12 months until 30 June 2025.
• Regional discount eligibility: from 2024-25, the regional discount eligibility criteria for a payroll tax discount will exclude extremely large businesses who have the financial capacity to contribute to Queensland’s revenues. Therefore, businesses that pay taxable wages of more than $350 million on an annual basis will be ineligible for the regional discount.

Land tax

• Land tax surcharge for foreign companies and trustees: the surcharge rate of land tax imposed in addition to general land tax rates for foreign companies and trustees of foreign trusts, and absentees, will be increased from 2 per cent to 3 per cent from 30 June 2024. Ex gratia relief from the land tax foreign surcharge will still be offered for Australian-based foreign entities whose commercial activities make a significant contribution to the Queensland economy and community. Refer to our JWS Insight for further details on the ex gratia exemption, ‘Is your organisation eligible for a land tax foreign surcharge exemption in Victoria or Queensland?’

Stamp duty

• Additional foreign acquirer duty increase: foreign purchasers of residential property in Queensland will see an increase in the surcharge transfer duty payable to 8 per cent from 1 July 2024, up from 7 per cent. Ex gratia relief will continue to be offered to Australian-based foreign entities whose commercial activities involve significant development and meet certain criteria.
• First home buyer concession: no duty will be payable up to a value of $700,000 and a partial concession is offered up to $800,000 (up from $550,000).
• First home vacant land concession: first home buyers will not pay stamp duty on the purchase of vacant land up to $350,000, up from $250,000. A partial concession will be available on land valued up to $500,000.

Other announcements

• Motor vehicle registration fee reduction: indexation of the registration fee and traffic improvement fee payable by motor vehicle owners will be frozen from 1 July 2024.

New South Wales

18 June 2024 was the day New South Wales (NSW) delivered its 2024-25 budget. The key business and taxation measures include the following.

Payroll tax

• Bulk-Billing Support Initiative: the NSW Government will exempt past, unpaid payroll tax liabilities for payments made to GP contractors up to 4 September 2024. After this date, GP clinics that meet the required bulk-billing thresholds will be eligible for a payroll tax rebate connected to payments made to contractor GPs.

Land tax

• Foreign investor surcharge: from 1 January 2025, foreign owners of land in NSW will pay an increased surcharge rate of land tax of 5 per cent, up from 4 per cent.
• Indexation of land tax thresholds: currently, the land tax threshold and premium rate threshold are indexed based on annual growth in average land valuations. However, from the 2025 land tax year, administrative indexation arrangements will be aligned with other states by fixing the land tax thresholds at their 2024 land tax year valuation.

Stamp duty

• Surcharge purchaser duty: the surcharge imposed on foreign investors and purchasers of residential land will increase from 8 per cent to 9 per cent from 1 January 2025.

Other announcements

• Coal royalty rate increase: As announced in the 2023-24 budget, coal royalty rates will increase by 2.6 per cent from 1 July 2024. Further information on this announcement is available in our JWS Insight, ‘New South Wales 2023-24 budget: increasing taxes and reducing exemptions’.
• Increase in royalty deduction rates: royal deduction rates for coal beneficiation will be indexed to the annual change in the Sydney CPI over the next three years to 2026-27. After 2026-27, the deduction rates will be frozen at their new higher level.

The Australian Capital Territory

The Australian Capital Territory (ACT) budget was announced on 25 June 2024. Here’s what you need to know about the main business and taxation measures. 

Payroll tax

• Bringing forward of payroll tax surcharge: in a loss for large businesses operating in the ACT, the Government has made the decision to bring forward the payroll tax surcharge to take effect in 2024-25. A 0.25 percentage point surcharge will be applied to businesses with Australia-wide wages exceeding $50 million and a 0.5 percentage point surcharge for national wages above $100 million. It was also announced that from 2025-26, businesses with Australia-wide wages above $50 million will pay a 0.5 percentage point surcharge and those exceeding $100 million in wages will pay a 1 percentage point surcharge. However, the payroll tax threshold will remain at $2 million and universities will be exempt.

Land tax

• Land tax threshold increased to $1 million: a new land tax threshold at $1 million of the Average Unimproved Value (AUV) will be introduced and marginal tax rates will be adjusted in 2024-25.

Stamp duty

• Home Buyer Concession Scheme expansion: the ACT Government announced that the Home Buyer Concession Scheme (HCBS) income eligibility threshold will increase from $170,000 to $250,000. Further, the additional income allowance per child under this scheme will increase from $3,300 to $4,600 from 1 July 2024.
• Thresholds for ‘off-the-plan’ developments increased: the RZ1 unit duty exemptions will temporarily increase to $1 million from 1 July 2024 until 30 June 2025.

Other announcements

• Short-term rental accommodation levy: a 5 per cent levy will be imposed on short-term rental providers on their gross revenue from 1 July 2025.

Tasmania

Tasmania was the final state to hand down its 2024-25 budget on 12 September 2024. The key budget highlights are summarised below.

Payroll tax

• Payroll Tax Rebate Scheme: the Payroll Tax Rebate Scheme which provides relief to businesses operating in Tasmania that employ apprentices, trainees and youth employees has been extended by 12 months to 30 June 2025. The rebate will be provided for a two-year period from the date that apprentices and trainees are employed and one year from the date a youth employee is employed.

Land tax

• Increase of tax-free threshold: the tax-free threshold for land tax will be increased to $124,999.
• Extension of the three-year exemption for newly built rental properties: the three-year land tax exemption for all newly built housing and former short-stay accommodation that has been made available for long-term rental will be extended for a further two years to 30 June 2026.

Stamp duty

• First home buyer duty exemption: a first home buyer duty exemption will be introduced with a $750,000 dutiable value cap. The exemption will be in place until 30 June 2026
• Pensioner concession: eligible pensioners who sell their existing home and downsize to a new home or unit at a lower cost with a 50 per cent concession on the duty chargeable on eligible transactions up to a dutiable value of $600,000 up to 30 June 2025.

Other announcements

• Short stay levy: the Government announced it is planning to introduce a five per cent short-stay accommodation levy and is currently consulting with relevant stakeholders.
• Pause on the proposed road user charge for zero and low emission vehicles: in light of the High Court decision in Vanderstock & Anor v State of Victoria [2023] HCA 30, the Tasmanian Government has placed a halt on its proposed road user charge for zero and low emission vehicles.

If you have any questions or comments about how the above measures might affect your business, please contact Kathryn Bertram from the JWS Tax team.

Important Disclaimer: The material contained in this article is comment of a general nature only and is not and nor is it intended to be advice on any specific professional matter. In that the effectiveness or accuracy of any professional advice depends upon the particular circumstances of each case, neither the firm nor any individual author accepts any responsibility whatsoever for any acts or omissions resulting from reliance upon the content of any articles. Before acting on the basis of any material contained in this publication, we recommend that you consult your professional adviser. Liability limited by a scheme approved under Professional Standards Legislation (Australia-wide except in Tasmania).