NSW Budget 2024-25: taxes and duties
The NSW Budget for 2024-25 was presented on 18 June 2024 made the following announcements to state taxes and duties:
Rate of surcharge purchaser duty.
This surcharge is paid in addition to stamp duty and applies to purchasers of residential-related property in NSW who are considered to be foreign persons.
The rate of surcharge purchaser duty will increase from 8% to 9%. This applies to surcharge duty transactions that occur on or after 1 January 2025.
Rate of surcharge land tax.
This surcharge is paid in addition to any land tax already paid at usual rates for owners of residential land in NSW who are considered to be foreign persons. There is no tax-free threshold applicable to this surcharge, so foreign owners may be required to pay the surcharge even when they do not pay land tax.
The rate of surcharge purchaser duty will increase from 4% to 5%. This applies to all residential land owned by foreign persons, commencing in the 2024 land tax year.
No change to land tax thresholds.
For the 2025 and subsequent land tax years, the land tax threshold will remain at $1,075,000 and the premium rate threshold will remain at $6,571,000 (being the thresholds for the 2024 land tax year).
Payroll tax relief for medical centres paying wages to contractor GPs.
Medical centres paying wages to contractor general practitioners (GPs) will receive payroll tax relief. Unpaid payroll liabilities before 4 September 2024 will be exempt from payroll tax. From 4 September 2024, there will be a rebate for payroll tax on wages on contractor GPs if the medical centre meets certain bulk billing thresholds:
- at least 80% of services if located in Greater Sydney
- at least 70% of services if located elsewhere.
These changes are contained in the Revenue Legislation Amendment Bill 2004 and are yet to be passed by NSW Parliament.
Contact us if you for more details if you have any questions.
