Every Australian state and territory has now delivered its 2026-27 state budget. New South Wales and Queensland were the last to hand down budgets on 23 June 2026. In this snapshot, we outline the key business taxation measures announced and identify important changes announced outside the budget process.
Continuing the trend of recent years, and in contrast to their federal counterpart, the 2026-27 state budgets did not contain many major taxation announcements, instead focusing on tweaks to existing rules, mainly aimed at encouraging investment in housing and providing relief for first home buyers. Notable measures include:
- in New South Wales (NSW), surcharge purchaser duty refund mechanisms are being introduced for transfers in respect of continuously operated build-to-rent and retirement village properties;
- in Victoria, a six-month extension for the off-the-plan transfer duty concession for apartments, townhouses and units. The concession now applies to contracts signed on or after 21 October 2024 and before 21 April 2027;
- in Western Australia (WA), the land tax exemption for build-to-rent developments has been increased to 75 per cent up from the general 50 per cent exemption where all self-contained dwellings become occupiable on or after 1 July 2025 and before 1 July 2030 for the first 10 assessment years;
- in the Northern Territory (NT), a higher rate of payroll tax of 6.5 per cent, up from 5.5 per cent, will apply to businesses with Australia-wide wages of $100 million or greater per annum from 1 July 2026; and
- in Queensland, a 12-month extension on the 50 per cent payroll tax rebate for wages paid to apprentices and trainees.
New South Wales
NSW delivered its 2026-27 budget on 23 June 2026. The introduction of surcharge purchaser duty refund mechanisms headlines the business announcements.
Payroll tax
- There were no new payroll tax announcements.
Land tax
- There were no new land tax announcements.
Stamp duty
- Operational build-to-rent properties: A new surcharge purchaser duty exemption has been announced whereby a transferee (including a foreign person) can obtain a refund if the build-to-rent land tax concession applied at the time of transfer and continues for at least five further tax years. Up to two tax years may be disregarded where the concession lapsed due to building or remedial works. The refund is clawed back if the land is subdivided within 15 years.
- Retirement villages: Surcharge purchaser duty refund mechanisms have been announced whereby:
- an Australian corporation can obtain a refund if it (or a related body corporate) constructs a retirement village of at least 50 dwellings on the relevant land after transfer;
- a transferee can obtain a refund if, at completion, a retirement village of at least 50 dwellings exists wholly on the land and operates continuously for at least five years or until a subsequent transfer. Up to two years may be disregarded for building, remedial works or other works carried out on the land for the purposes of the retirement village;
- no surcharge purchaser duty is chargeable where a dwelling in a retirement village is transferred back to the village operator from a resident. This is a complete upfront exemption (not a refund mechanism) applying to transfers entered into on or after 1 July 2026.
- First Home Buyers: Stamp duty for first home buyers purchasing a home worth up to $800,000 is abolished and a concessional rate of duty applies to properties worth up to $1 million.
Victoria
Victoria delivered its 2026-27 budget on 5 May 2026. However, the measures are mainly aimed at housing and cost of living relief, with few measures likely to be of interest to businesses.
Payroll tax
- Non-government schools: From 1 July 2026, non-government schools with an income per student up to $16,397 will be exempt from payroll tax, an increase from the previous threshold of $15,000. The income per student threshold will increase each year in line with the Schooling Resource Standard amount for secondary students determined and published by the Commonwealth Government.
Land tax
- Aside from land tax relief for persons affected by the January 2026 bushfires, there were no new land tax announcements.
Stamp duty
- Off-the-plan: The temporary land transfer duty concession for off-the-plan apartments, townhouses, and units will be extended for an additional six months. This concession reduces the dutiable value by the construction costs that have been incurred after entering into the contract. The concession will now apply to contracts signed on or after 21 October 2024 and before 21 April 2027.
Other announcements
- Infrastructure contributions: Infrastructure contributions will be implemented from 1 January 2027 as a charge on property development in the 10 pilot Train and Tram Zone (TTZ) Activity Centres and expanded to 48 additional TTZ Activity Centres from 1 July 2027.
- Vehicle registration rebate: Individuals will be entitled to a 20 per cent rebate on the cost of up to two light vehicle registrations for the period of 1 July 2025 to 30 June 2026.
Queensland
Queensland delivered its 2026-27 budget on 23 June 2026. There were minimal tax changes included in this budget.
Payroll tax
- Apprentice and trainee payroll tax rebate: The 50 per cent payroll tax rebate for wages paid to apprentices and trainees will be extended until 30 June 2027.
Land tax
- There were no new land tax announcements.
Stamp duty
- Temporary residents: From 1 August 2026, temporary residents will generally be ineligible for the home, first home and vacant land transfer duty concessions.
Western Australia
Western Australia delivered its 2026-27 budget on 7 May 2026. There are a series of announcements aimed at boosting housing stock.
Payroll tax
- There were no new payroll tax announcements.
Land tax
- Increased build-to-rent exemption: Announced prior to the Budget, the Land Tax Assessment Amendment (Build-to-Rent) Act 2026 introduced an increased land tax ‘exemption’ of 75 per cent (up from the general 50 per cent exemption) for build-to-rent developments where all self-contained dwellings become lawfully able to be occupied on or after 1 July 2025 and before 1 July 2030. The increased exemption applies for the first 10 assessment years, after which the general 50 per cent concession may continue to apply for up to a further 10 years.
Stamp duty
- Exemption from Foreign Buyers Duty: A new Foreign Buyers Duty exemption for foreign buyers who add housing supply to the market for transactions entered into on or after 7 May 2026 will apply. The new exemption requires the foreign buyer to construct and sell new dwellings within two years of the original purchase. The following activities will be eligible for the new exemption:
- purchasing vacant land and constructing a dwelling(s);
- purchasing and completing a partially constructed dwelling(s);
- purchasing land with established property on which more dwellings will be constructed than demolished; and
- repurposing or refurbishing commercial or industrial buildings into residential dwellings.
- First home owner exemption for established homes: The first home owner stamp duty exemption threshold for established homes was increased to $600,000 from $500,000 and the concession threshold to $800,000 from $700,000 in the Perth and Peel regions and $750,000 in other regions. The link between the value of vacant land and the value of the property for the purposes of the First Home Owner Grant for transactions entered into on or after 7 May 2026 has been removed.
- First home owner exemption for vacant land: The first home owner stamp duty exemption threshold for vacant land purchases was increased to $450,000 from $350,000 and the concession threshold to $550,000 up from $450,000.
- Off-the-plan: The off-the-plan transfer duty concession is extended for another two years from 30 June 2026 to 30 June 2028 with an increase to the exemption and concession thresholds and now includes survey strata developments. The government has increased the concession for pre-construction and under construction transactions entered into on or after 12 March 2026 by:
- expanding the concession to include off-the-plan dwellings in survey strata schemes such as units and villas, in addition to apartments, townhouses and other strata build developments; and
- increasing the concession’s lower and upper property price thresholds to $800,000 and $900,000.
This means eligible pre-construction contracts will receive a 100 per cent concession on properties valued up to $800,000, phasing to a 50 per cent concession for properties valued at $900,000 (capped at $50,000).
For eligible under construction contracts, the concession phases down from 75 per cent to 37.5 per cent.
Tasmania
Tasmania delivered its 2026-27 budget on 21 May 2026. Similar to last year, there were minimal references to tax reform in this budget. It also confirmed an end to some payroll tax and duty concessions and exemptions which had been extended on a budget-by-budget basis in previous years.
Payroll tax
- Apprentice payroll tax rebate: The employer payroll tax rebate for creating additional apprentice positions was not renewed in this budget and expired on 30 June 2026. The rebate remains available for employees employed before 30 June 2026 for the 2027 financial year.
Land tax
- There were no new land tax announcements.
Stamp duty
- First home buyers: The First Home Buyer Duty exemption was not renewed in this budget and expired on 30 June 2026.
- Pre-completion duty concession: The pre-completion duty concession for new apartments and units expired on 30 June 2026.
Other announcements
- Short-stay accommodation levy: Treasury is progressing with the introduction of the 5 per cent short-stay accommodation levy. The Short Stay Levy Bill 2026 passed the House of Assembly on 7 May 2026.
South Australia
South Australia delivered its 2026-27 budget on 4 June 2026. This budget comprised minimal tax changes.
Payroll tax
- There were no new payroll tax announcements.
Land tax
- There were no new land tax announcements.
Stamp duty
- Downsizing Stamp Duty Relief: People aged 60 and over who purchase a new home or off-the-plan apartment valued at up to $2 million or vacant land valued up to $1.2 million may be eligible for full stamp duty relief. Partial relief may be available for new homes or off-the-plan apartments valued between $2 million to $2.1 million, or vacant land between $1.2 million to $1.3 million. The previous home must be sold and the new home must be smaller. The relief is available for contracts entered into on or after 25 March 2025.
Australian Capital Territory
The Australian Capital Territory delivered its 2026-27 budget on 10 June 2026. The main taxation announcement is the expansion of stamp duty exemptions and concessions, with all first home buyers now being exempt from duty. This marks another step in the ACT’s 20-year plan to abolish stamp duty that began in 2012.
Payroll tax
- There were no new payroll tax announcements.
Land tax
- Community Housing Exemption Expansion: The Affordable Community Housing Land Tax Exemption Scheme provides land tax exemptions to landlords who rent their properties at less than 75 per cent of the market rate through a registered Community Housing Provider (CHP). The property cap has been increased from 250 to 1,000. CHPs are eligible for a $500,000 grant over four years to manage and expand affordable rentals under the scheme.
Stamp duty
- Expanded exemptions and concessions: From 1 July 2026, the stamp duty concessions will be expanded:
- all first home buyers will be exempt from stamp duty;
- owner-occupier purchasers of turn-key and off the plan units will be exempt from stamp duty;
- eligible pensioners will be exempt from stamp duty;
- homebuyers eligible for the Disability Duty Concession Scheme will be exempt from stamp duty, regardless of the property price; and
- the Pensioner Duty Concession Scheme will be expanded to Service Pension recipients with a permanent incapacity to work, and Department of Veterans’ Affairs Gold Card holders will no longer require a 12-month waiting period.
Northern Territory
The Northern Territory delivered its 2026-27 budget on 13 May 2026. Other than an increase in the payroll tax rate for large businesses, there were minimal tax references.
Payroll tax
- Higher rate for large businesses: From 1 July 2026, a higher payroll tax rate of 6.5 per cent, up from 5.5 per cent, will apply to employers with Australia-wide wages of $100 million or greater per annum. This includes both employers who meet or exceed $100 million in Australia-wide wages on their own or employers who are members of a group that meets this threshold. Employers below the threshold are unaffected by these changes.
Land tax
- The NT does not impose land tax.
Stamp duty
- There were no new stamp duty announcements.
Please reach out to our Tax team if you have any state tax issues to discuss.