State and territory 2025/26 budget snapshot – key business announcements

NSW delivered its 2025-26 budget on 24 June 2025. There are a number of interesting business tax measures that have been announced which are capable of affecting various sectors, including infrastructure and resources.

Payroll tax

• Medical centres: From 4 September 2024, medical centres are eligible for a payroll tax rebate in respect of contractor GP wages (subject to specified bulk-billing thresholds).

Land tax

• Permanent land tax concession for new BTR developments: Previously, the temporary land tax concession (50 per cent reduction in assessed land value for land tax purposes) for new BTR developments was due to expire on 31 December 2039. The NSW Government announced in its 2025-26 budget that this land tax concession for new BTR developments would apply indefinitely from the 2026 land tax year, subject to eligibility requirements. As part of this concession, there has also been a removal of the requirement that a proportion of construction labour force hours be performed by specified classes of workers. It should be noted that developments that are already receiving / have applied for the BTR land tax concession for the 2025 land tax year or prior years are ineligible for the extended concession.
• Exemption from foreign land tax surcharge for new BTR developments: Australian BTR developers will continue to be able to apply for an exemption or refund for new BTR developments from foreign land tax surcharges (or a refund of paid surcharges). However, they can now apply indefinitely subject to eligibility because the BTR exemption is no longer set to end on 31 December 2039.

Stamp duty

• Exemption from foreign purchaser duty surcharge for new BTR developments: Australian BTR developers will continue to be able to apply for an exemption or refund for new BTR developments from foreign purchaser duty surcharges (or a refund of paid surcharges). However, they can now apply for relief indefinitely, subject to eligibility, because the BTR exemption is no longer set to end on 31 December 2039.

Other announcements

• Critical Minerals Royalty Deferral Scheme: In its 2025-26 budget, the NSW Government committed to a critical minerals royalty deferral scheme. The royalty deferral scheme is intended to be opt-in, apply to projects commencing production between 1 July 2025 and 30 June 2030, apply exclusively to minerals on the Commonwealth Government’s Critical Minerals List (Critical Minerals), and apply to projects predominantly extracting Critical Minerals (as well as projects with a market capitalisation of less than AU$5 billion).
• Revenue NSW tax integrity program: Additional funding has been granted to Revenue NSW to support an increased level of tax compliance.
• Electric vehicles: NSW continues to forecast the implementation of a road user charge for electric vehicle drivers from 1 July 2027. This is interesting given the High Court found a similar charge in Victoria was constitutionally invalid in the case of Vanderstock v Victoria [2023] HCA 30. This suggests NSW may be working with the Federal Government behind-the-scenes to ensure that such a charge will be constitutionally valid when it commences. You can read more about the Vanderstock decision in our earlier insight article. 

Victoria delivered its 2025-26 budget on 20 May 2025 with only one revenue announcement, being the extension of the temporary land transfer duty concession for OTP apartments, units and townhouses.

Payroll tax

• There were no new payroll tax announcements.

Land tax

• There were no new land tax announcements.

Stamp duty

• Extension of the temporary land transfer duty concession: The Victorian Government announced that the temporary land transfer duty concession for OTP apartments, units and townhouses would be extended for a further 12 months (applying to contracts signed on or after 21 October 2024 and before 21 October 2026).

Other announcements

• State Taxation Acts Amendment Act 2025: The State Taxation Acts Amendment Act 2025 (Vic) received royal assent on 24 June 2025, introducing some measures that were not announced in the budget. These measures included:
  • amendments to the BTR land tax regime, including a provision to allow the Commissioner to determine that land is eligible for BTR benefits despite any period for which a dwelling in a BTR development fails to satisfy certain occupancy requirements temporarily (e.g. due to damage by a fire) – for further information on this, please see our BTR article);
  • the introduction of a new 50 per cent penalty tax rate for recklessness by a taxpayer;
  • amendments to the Commercial and Industrial Property Tax Reform Act 2024 (Vic) to authorise the Commissioner to provisionally determine that land has a qualifying use; and
  • revising the definition of “regional employee” under the Payroll Tax Act 2007 (Vic).

Queensland delivered its 2025-26 budget on 24 June 2025. The key business and taxation measures are set out below.

Payroll tax 

• Apprentice and trainee payroll tax rebate extension: The Queensland Government has announced a 12-month extension of the 50 per cent payroll tax rebate for wages paid to apprentices and trainees to 30 June 2026.
• Permanent payroll tax exemption for medical practices: Payments by medical practices to contracted and employed GPs are eligible for a permanent payroll tax exemption.

Land tax

• There were no new land tax announcements.

Stamp duty

• First home buyer transfer duty exemption: From 1 May 2025, first home buyers purchasing a new build or vacant land to build their homes will not be liable for transfer duty.

Other announcements

• Ex gratia relief: The Queensland Government is working with the newly re-established Property Consultative Committee to identify and implement changes to streamline and simplify the land tax foreign surcharge and additional foreign acquirer duty ex gratia relief process.

Western Australia delivered its 2025-26 budget on 19 June 2025. There is a strong focus on infrastructure investment and cost-of-living relief in this budget, which takes shape through taxation measures including a broader first home owner transfer duty concession base, increased land tax relief for BTR developments, and an extension of the OTP transfer duty concession.

Payroll tax

• There were no new payroll tax announcements.

Land tax

• Increased land tax relief for BTR developments: The land tax exemption will increase to 75 per cent (from 50 per cent) for eligible BTR projects that become operational between 1 July 2025 and 30 June 2028. The increased 75 per cent land tax exemption will apply for the first three assessment years only before reverting to its original 50 per cent amount.

Stamp duty

• Broader first home owner transfer duty concession: For transactions entered into on or after 21 March 2025, the thresholds for the transfer duty exemption and concessional duty rates would increase as set out below.

  For first home buyers of established properties – for purchases:

  • up to $500,000 – receive a transfer duty exemption;
  • in the Perth and Peel regions up to $700,000 – receive a concessional duty rate; and
  • outside the Perth and Peel regions up to $750,000 – receive concessional duty rate.

  For first home buyers of vacant land – for purchases:

  • up to $350,000 – receive a transfer duty exemption; and
  • up to $450,000 – receive a concessional duty rate. 
     

• Extended OTP transfer duty concession: The OTP transfer duty concession has been extended by 12 months, from 30 June 2025 to 30 June 2026. For eligible pre-construction and under-construction transactions entered into on or after 21 March 2025:

  • the concession now applies to OTP dwellings on single-tier strata schemes and community title (building) schemes (excluding survey-strata schemes), including townhouses and villas; and
  • the concession’s lower price threshold is now $750,000 (from $650,000) and upper price threshold is now $850,000 (from $750,000).

  A summary of the concession is set out below.

  Pre-construction contracts – valued:

  • up to $750,000 – 100 per cent transfer duty exemption capped at $50,000;
  • between $750,000-$850,000 – between 100-50 per cent of duty paid/payable, the rate reduces at 0.05 per cent for every $100 in dutiable value that exceeds $750,000, ultimately reducing to a 50 per cent transfer duty concession capped at $50,000; and
  • at over $850,000 – receive a 50 per cent transfer duty concession capped at $50,000.

  Under-construction contracts – valued: 

  • up to $750,000-75 per cent transfer duty exemption capped at $50,000;
  • between $750,000-$850,000 – between 75-37.5 per cent of duty paid/payable, the rate reduces at 0.0375 per cent for every $100 in dutiable value over $750,000, ultimately reducing to a 37.5 per cent transfer duty concession capped at $50,000; and
  • at over $850,000 – receive a 37.5 per cent transfer duty concession capped at $50,000. 

Tasmania delivered its 2025-26 budget on 29 May 2025. There were no new revenue measures announced in the budget.

Payroll tax

• There were no new payroll tax announcements.

Land tax

• There were no new land tax announcements.

Stamp duty

• First home buyer exemption: As part of the Tasmanian Government’s “Stamping Out Stamp Duty” policy, which was introduced in 2024, the first home buyer duty exemption for purchases of $750,000 or less continues to apply until 30 June 2026.

South Australia delivered its 2025-26 budget on 5 June 2025. This Budget did not include any new tax measures.

Payroll tax

• There were no new payroll tax announcements.

Land tax

• There were no new land tax announcements.

Stamp duty

• There were no new stamp duty announcements.

The ACT delivered its 2025-26 budget on 24 June 2025. A number of the measures introduced by the ACT’s 2025-26 budget relate to payroll tax and miscellaneous cost of living changes.

Payroll tax

• Changes to payroll tax rates: The ACT Government has introduced changes to payroll tax rates with effect from 1 July 2026, as set out below.
  • Below $1.75 million – Nil.
  • Between $1,75m - $20 million – 6.75 per cent (no surcharge rate included).
  • Between $20 million - $50 million – 6.85 per cent (including 0.1 per cent surcharge).
  • Between $50 million - $100 million – 7.25 per cent (including 0.5 per cent surcharge).
  • Above $100 million – 7.75 per cent (including 1.0 per cent surcharge).

Land tax

• Increased property cap of the Affordable Community Housing Land Tax Exemption Scheme (Scheme): The Scheme grants property owners a full land tax exemption if, through a registered community housing provider, they rent their properties to eligible tenants at less than 75 per cent of the market rent. The ACT Government has announced that the current property cap for the Scheme will be increased from 250 to 1,000 properties.

Stamp duty

• Owner-occupier purchases: Owner-occupier purchases to be subject to a reduced stamp duty amount in 2025-26.
• Conveyance duty threshold concessions: There has been an increase in the threshold for stamp duty concessions to $1.02 million for OTP and RZ1 unit duty exemptions.
• Marginal tax rate for home buyers and commercial duty threshold: The ACT Government has reduced the lowest marginal tax rate for home buyers to 0.28 per cent (from 1.2 per cent) and increased the commercial duty threshold from $1.5 million to $2 million.
• Motor vehicle duty: From 1 September 2025, a new tax rate of 8 per cent for motor vehicle duty (for vehicles valued over $80,000) will apply, and motor vehicle duty concessions for zero emission vehicles will be replaced with a minimum 2.5 per cent duty and with increasing duty rates proportionally based on emissions and value.

Other announcements

• Short-term rental accommodation (STRA) levy: From 1 July 2025, a new STRA levy equating to 5 per cent of gross revenue will be introduced.
• General rates: In 2025-26, average general rates will increase by 3.75 per cent for residential and commercial properties, and 3.25 per cent for rural properties. Further, for non-units with an Average Unimproved Value of over $1 million, a new land value threshold has been introduced. 

The NT delivered its 2025-26 budget on 13 May 2025. The key business taxation measures contained in the budget include a revised payroll tax threshold and annual deduction increase, a payroll tax exemption for apprentices and trainees, a relaxation of payroll tax and stamp duty exemption requirements for charities and not-for-profit (NFP) entities, and gambling tax changes. 

Payroll tax

• Payroll tax threshold and increased annual deduction: From 1 July 2025, the payroll tax tax-free threshold and maximum annual deduction will increase from $1.5 million to $2.5 million. The new annual deduction will reduce at a rate of $1 for every $2 of taxable wages above the tax-free threshold (previously, $1 for every $4 of taxable wages). Taxable wages of:
  • $2.5 million or below – exempt from payroll tax;
  • between $2.5 million and $7.5 million – reduced payroll tax; and
  • $7.5 million or more – no annual deduction, pay tax on entire taxable Territory wages. 
     
• Apprentice and trainee exemption: From 1 July 2025, wages paid to apprentices and eligible trainees will be exempt from payroll tax if certain requirements are satisfied, including that:
  • the employee satisfies the definition of ‘apprentice’ or ‘trainee’ (Training and Skills Development Act 2016 (NT)); and
  • for trainees, the trainee was employed by the employer for less than three months (for full-time employees) or 12 months (for part-time or casual employees) immediately before commencing the traineeship.
     
• Exemptions for charities and NFP entities: Charities and NFP entities are no longer required to substantiate that staff engaging in commercial or competitive activities were excluded from wages paid or payable. To be eligible for the exemption, charities and NFP entities must instead satisfy that the wages are paid/payable to a person “engaged exclusively in work of a kind ordinarily performed in connection with the carrying on of charitable activities by the entity”.

Land tax

• The NT does not impose land tax.

Stamp duty

• Stamp duty exemption for charities and NFP entities: Previously, to access the stamp duty exemption, charities and NFP entities were required to substantiate that acquired property was used solely in a non-commercial or non-competitive manner. The NT Government announced in its 2025-26 budget that this requirement would be removed.

Gambling tax

• Minimum tax rate for internet gaming licence activities: Effective from 1 July 2025, the Gaming Control Act 1993 (NT) is being amended to set a minimum 50 per cent tax rate for activities conducted under an internet gaming licence.
• Administration of internet gaming tax: Amendments to the Taxation Administration Act 2007 (NT) to align the administration of internet gaming tax (tax collection, refunding and payment, as well as objection and appeal rights) with other Territory taxes.
• Tax cap for licensed corporate bookmakers and betting exchanges: Effective from 1 July 2025, amendments to the Racing and Wagering Act 2024 (NT) to double the annual tax cap applicable to licensed corporate bookmakers and betting exchanges from 1 million revenue units to 2 million revenue units. From 1 July 2025, the value of a revenue unit will increase to $1.45.