Abolition of certain taxes in NSW
After years of delays, it seems that the New South Wales Government will on 1 July 2016 finally make good on its promises to abolish a raft of duties. Marketable Securities Duty, Business Assets Duty and Mortgage Duty, all previously collected by the Office of State Revenue, will no longer be payable at of the turn of the financial year.
The NSW State Government promised the abolition of certain duties as a consequence of the introduction of the Goods and Services Tax on 1 July 2000. It now looks almost certain to follow through on abolishing a raft of duties at the turn of the financial year.
Mortgage Duty, for mortgages executed on or after 1 July, will not be liable to duty. Also, further advances made on or after 1 July, irrespective of the date of the mortgage, will no longer be liable to duty. Click here for further mortgage and caveat related duty abolitions.
Business Assets Duty, which is ordinarily payable on the transfer of business assets such as goodwill, intellectual property and certain statutory licences will no longer be payable. For more information on abolition of this duty, including anti-avoidance measures, click here.
Marketable Securities (shares and units) Duty, which has been payable for the transfer of securities in New South Wales, will be abolished from 1 July 2016. For further information on abolition of these and related duties, on where duty is still payable, as well as anti-avoidance measures, click here.
Some anti-avoidance measures have been put in place to ensure that a transaction which occurred after 1 July was not made or entered into pursuant to another arrangement prior to 1 July with the main purpose being to defer the transfer or transaction to avoid duty.
What Does This Mean for you?
The delivery of this long held promise by the New South Wales Government could mean significant savings for those entering into transactions after 1 July 2016. If you are considering purchasing, or selling assets, or have begun such a process, it may be worth seeking some advice about the timing of the transaction.