In brief
All of the states and territories have now delivered their budgets for the coming financial year. Although there are no major changes to state and territory taxes, there are some minor changes in each jurisdiction. Partner Katrina Parkyn and Lawyer Scott Lang report on the notable developments for business and industry.
New South Wales
New South Wales has legislated to abolish transfer duty on business assets (including statutory licences or permissions and gaming machine entitlements), marketable securities duty and mortgage duty from 1 July 2016.
This is not the first time an abolition date has been enshrined in legislation. The abolition of these duties had been legislated to take effect from 1 July 2013 but last minute amendments to the Duties Act 1997 (NSW) were passed in late June 2013 to remove the 1 July 2013 abolition date. It remains to be seen whether the current abolition date will suffer the same fate.
Victoria
Victoria has legislated to abolish life insurance duty, increase the rate of motor vehicle registration and transfer duty by 40 cents per $200 (or part thereof) and reduce the payroll tax rate from 4.9 per cent to 4.85 per cent from 1 July 2014.
Queensland
Legislation implementing the Newman Government's Budget has been passed by the Queensland Parliament and received Royal Assent. The legislation affects minor changes to the family primary production business concession provisions in the Duties Act 2001 (Qld) (removing the requirement for a direct lineal relationship between transferors and transferees) and exempts Queensland Government departments and hospitals and health services from payroll tax (subject to certain criteria).
Western Australia
The only changes of note proposed in Western Australia are an increase to the land tax rate of 10 per cent and an increase to the payroll tax exemption threshold from $750,000 to $800,000 for the 2014-16 financial years and then to $850,000 for the 2016-17 financial year onwards. Legislation to implement these changes remains before the Western Australian Parliament.
Tasmania
In Tasmania, legislation to amend the Employment Incentive Scheme (Payroll Tax Rebate) Act 2009 (Tas) has received Royal Assent. The legislation extends the payroll tax rebate scheme so that medium to large businesses are given a rebate equivalent to the amount of payroll tax they paid on new employment created between 30 June 2014 and 30 June 2015 provided that the new positions are maintained until at least 30 June 2016.
South Australia
South Australia's Budget contained no significant measures relevant to business or industry.
Northern Territory
The Territory's Budget contained no significant measures relevant to business or industry.
Australian Capital Territory
The ACT's Budget announced the following minor changes:
- conveyance duty rates lowered, including lowering the threshold for flat rate conveyance duty to $1,455,000 and lowering the flat rate to 5.25 per cent;
- payroll tax threshold increased from $1.75 million to $1.85 million; and
- introduction of a fixed land tax charge with additional (and lowered) marginal land tax rates.
Legislation to implement these changes is still before the Legislative Assembly.