2008 State Mini Budget
On 11 November 2008 the NSW Government issued a financial statement, introducing the following measures:
- Land tax
From 1 July 2009 a new premium land tax marginal rate of 2% will apply to tax payers who have land holdings above $2.25 million (Premium Threshold). The Premium Threshold will be indexed for the 2010 tax year and following tax years.
The tax free threshold for 2009 is $368,000 and land holdings below the Premium Threshold will remain subject to the current 1.6% tax.
- Nominal duty
Currently nominal duty of either $2 or $10 is payable on a number of documents, such as duplicates of contracts and collateral mortgages. From 1 January 2009, current nominal duty of $2 will increase to $10 and current nominal duty of $10 will increase to $50.
Duty on the execution of certain trust documents will increase from $200 to $500.
- Deferrals
Abolition of transfer duty on non-land business assets has been deferred from 1 January 2009 to 1 July 2012.
Mortgage duty on owner occupied housing and investment housing has already been abolished but the abolition of remaining mortgage duty has been deferred until 1 July 2012.
- Landholder duty
Currently ‘Land Rich’ duty is paid on any acquisition of a ‘significant interest’ of a private company, private unit trust or wholesale trust, where more than 60% of that entities property is land.
The ‘Land Rich’ duty will be replaced by the ‘landholder’ model. Under the new model, the purchase of a significant parcel of shares or units in any entity that owns land above a threshold value is subject to transfer duty as if there is a direct purchase of land.
- Parking levies
From 1 July 2009, off the street, non residential parking will increase per year from:
- $950 to $2000 in Sydney, North Sydney and Milsons Point business districts; and
- $470 to $710 a year in St Leonards, Chatswood, Parramatta and Bondi Junction business areas.
Written by Vincent Tripodina, Graduate-at-Law
