Tax related measures from 2016 Aus budget
The NSW Budget for 2016/17 was handed down by the Treasurer Gladys Berejiklian on 21 June 2016.
The Budget contained some tax-related measures that may be relevant to your business.
As previously announced, transfer duty on non-real property business assets, business mortgages and non-listed securities will be abolished from 1 July 2016, which will be favourable for those considering acquiring or selling a business in the future.
Changes have also been announced to the payroll tax rebate under the Jobs Action Plan. For new employees joining on or after 31 July 2016, the rebate will be increased from $5,000 to $6,000, but will be restricted to businesses that have a full-time equivalent headcount of 50 or less.
A range of measures have also been announced that will affect the purchase and ownership of Australian property by foreign persons, including:
- A 4% stamp duty surcharge on the purchase of residential real estate from 21 June 2016;
- The 12-month deferral of stamp duty for off-the-plan purchases being abolished from 21 June 2016;
- A 0.75% land tax surcharge on residential real estate from 1 January 2017, including on a principal place of residence;
- The tax-free threshold will not apply to the land tax surcharge;
Please note that foreign persons are generally prohibited from purchasing established residential property and require FIRB approval to purchase new residential property.
Please do not hesitate to contact our office should you wish to discuss how the above changes affect your business.
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62 Burwood Rd, Burwood NSW 2134