The NSW Budget for 2022-23 was delivered on 21 June 2022 announcing wide-ranging spending across education, energy, health, housing and infrastructure.
This is what we know so far with more details to follow once available.
Stamp Duty & Land Tax Reform
There is a proposal to replace stamp duty with a land tax for first home buyers. The NSW Government plans to overhaul the stamp duty system in a program called the ‘First Home Buyer Choice’ investment. This will allow purchasers to opt-in to an annual property tax payment, instead of stamp duty, on properties valued up to $1.5 million. The annual tax is proposed to be $400, plus 0.3 per cent of the land value of the property. So on a property with land value of $1 million, the annual land tax would be $3,400.
The Government has also proposed an increase in the land tax surcharge for foreign investors, from two per cent to four per cent.
Businesses will now see payroll tax rates return to 5.45 per cent, up from 4.85 per cent over the last two financial years with no changes announced to the threshold which remains at $1.2 million.
A year of free pre-kindergarten and extra funding for pre-schools as well as a new $150 back to school bonus for every school child.
A focus on renewable energy and increased rebates for rooftop solar energy systems.
Increased funding for healthcare workers.
Improved transport and community infrastructure for Western Sydney.
If you have any further questions please do not hesitate to contact your Sullivan Dewing Client Manager.