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2008 Further amendments

State Revenue and Other Legislation Amendment (Budget Measures) Act 2008

The State Revenue and Other Legislation Amendment (Budget Measures) Act 2008 gives effect to certain Budget measures announced by the Treasurer in the Legislative Assembly on 11 November 2008. The Act also gives effect to other related revenue measures.

The Act contains amendments for the:

It received royal assent on 10 December 2008.

Amendment of Duties Act 1997

Nominal or flat-rate duties

The rate of certain nominal or flat-rate duties will increase from 1 January 2009.

The changes concerned affect a number of instruments or transactions in respect of which ad valorem duty is not payable, for example, duplicates of instruments on which ad valorem duty has already been paid, certain transfers that attract a concessional rate of duty (transfers relating to trusts, superannuation and deceased estates), and collateral mortgages.

The changes are as follows:

  • if the duty payable is currently $2, it will increase to $10

  • if the duty payable is currently $10, it will increase to $50

  • if the duty payable is currently $200, it will increase to $500.

Common examples include:

  • transfers in conformity with contracts (Section 18(2)) from $2 to $10

  • duplicates or counterparts (Section 271) from $2 to $10

  • transfers not in conformity (Section 18(3)) from $2 to $10

  • transfers pursuant to a will (Section 63) from $10 to $50

  • transfers following a change of trustee (Section 54) from $10 to $50

  • resulting trusts (Section 55) from $10 to $50

  • aggregation related documents (Sections 18(1) and 25) from $10 to $50

  • partitions (Section 30), minimum duty from $10 to $50

  • minimum duty on a transfer of shares in a corporation that is not the legal and beneficial owner of land in NSW (Section 33(3)) increases from $10 to $50

  • nomineeing transactions relating to unquoted marketable securities (Section 59A) from $10 to $50

  • collateral mortgages (Section 218B) from $10 to $50

  • caveats if the mortgage is stamped or is not chargeable with mortgage duty (Section227(2)(b)) from $10 to $50

  • establishment of a trust relating to unidentified property and non-dutiable property (Section 58) from $200 to $500

  • transfers of property in connection with persons changing superannuation funds (Section 61), maximum duty increases from $200 to $500

  • transfers between trustees and custodians of superannuation funds or trusts (Section 62), maximum duty increases from $200 to $500 or from $2 to $10 for marketable securities.

Commencement

These amendments commence on 1 January 2009.

Deferred abolition of duties

The abolition of duty on the transfer of unquoted marketable securities and commercial fishery shares has been deferred until 1 July 2012. The abolition of duty on an entitlement to voting shares that arises from a capital reduction or rights alteration, and duty on an allotment of shares by direction has also been deferred until 1 July 2012.

The abolition of duty on the transfer of business assets and statutory licences and permissions has been deferred until 1 July 2012.

The abolition of mortgage duty has been deferred until 1 July 2012. Mortgages associated with owner occupied housing or investment housing remain exempt from mortgage duty.

Commencement

These amendments to the Duties Act 1997 commence, or are taken to have commenced, on 31 December 2008.

Termination of strata schemes

The amendments provide for a new exemption from duty for a vesting of land, or an interest in land, that occurs as a consequence of the termination of a strata scheme or a scheme under the Community Land Development Act 1989. Sections 65(18) – 65(21) of the Duties Act 1997 apply.

The exemption will apply only if the unit holders in the scheme retain, following the termination, an interest in the land the subject of the scheme in proportion to their unit entitlements.

Commencement

This amendment commenced on 27 November 2008.

Amendment of land tax legislation

The amendments to the Land Tax Act 1956 introduce a new rate of land tax, which will be applicable to landholdings with a taxable value in excess of a premium rate threshold.

The new premium rate of land tax is 2%, and will apply only in respect of the amount by which the taxable value of the landholdings of a landholder exceeds the premium rate threshold.

The existing rate of 1.6% will continue to apply to much of the taxable value of the land that does not exceed the premium rate threshold but does exceed the tax threshold (if applicable to the landholder).

In the case of land that is the subject of a special trust, the existing rate of 1.6% will apply to landholdings with a taxable value not exceeding the premium rate threshold and the premium rate will apply to landholdings with a taxable value exceeding that threshold.

If the land is owned by a non-concessional company, land tax will be levied at a flat rate of 1.6% of the taxable value of the land (if the total taxable value of all landholdings of the group of which the non-concessional company is a member do not exceed the premium rate threshold) or at 2% of the taxable value of the land (if the total taxable value of all landholdings of the group of which the non-concessional company exceeds the premium rate threshold).

The changes apply to the 2009 land tax year and subsequent land tax years.

The amendments also provide for a definition of premium rate threshold and non-concessional company, by reference to the Land Tax Management Act 1956.

The amendments to the Land Tax Management Act 1956 provides for the initial determination, and subsequent indexation, of the new premium rate threshold (the threshold at which a higher rate of land tax applies).

The premium rate threshold is $2,250,000 for the 2009 land tax year. After that, it will be indexed annually in accordance with movements in the tax threshold.

A definition of ’group’ for the purpose of determining the land tax rate applicable to a non-concessional company is also included in the amendments. Companies are members of a group if they are related to each other under section 29 of the Land Tax Management Act 1956.

Commencement

The amendments to the Land Tax Act 1956 and the Land Tax Management Act 1956 commence on 31 December 2008.

Amendment of First Home Owner Grant Act 2000

The amendments to the First Home Owner Grant Act 2000 provide additional amounts to the basic grant under 2 separate schemes.

The standard amount of the first home owner grant is $7,000 (or the consideration payable in respect of the purchase or construction of a first home, if that amount is less than $7,000).

Under the first scheme (known as the first home owner boost), an additional amount of $7,000 may be paid for the purchase of an established home. If a new home is purchased or constructed, the additional amount payable is $14,000.

To be eligible for the first home owner boost, the applicant must be eligible for the First Home Owner Grant, and the contract concerned must be entered into on or after 14 October 2008 and on or before 30 June 2009. In the case of a home being built by an owner builder, the building work must commence on or after 14 October 2008 and on or before 30 June 2009. There are also requirements for the completion of construction works.

Under the second scheme (known as the NSW new home buyers supplement), an additional amount of $3,000 may be paid for the purchase or construction of a new home.

To be eligible for the NSW new home buyers supplement, the applicant must be eligible for the First Home Owner Grant and the contract concerned must be entered into on or after 11 November 2008 and on or before 10 November 2009. In the case of a home being built by an owner builder, the building work must commence on or after 11 November 2008 and on or before 10 November 2009. There are also requirements for the completion of construction works.

For transactions that qualify for both the first home owner boost for new homes and the NSW new home buyers supplement, the first home owner grant will be a maximum of $24,000.

A further amendment enables the Chief Commissioner to impose conditions on the payment of a first home owner grant requiring the repayment of the an amount paid as a first home owner boost or NSW new home buyers supplement if eligibility requirements for the first home owner boost or NSW new home buyers supplement are not complied with.

Commencement

The amendments commence on assent but have effect from 14 October 2008.

Amendment of Parking Space Levy Act

The amendments to the Parking Space Levy Act 1992 increase the parking space levy (with effect from the financial year commencing 1 July 2009) to:

  • $2,000 per parking space, in the case of a parking space in a Category 1 area (which is comprised of the City of Sydney and parts of North Sydney)

  • $710 per parking space, in the case of a parking space in a Category 2 area (which is comprised of parts of Bondi Junction, Chatswood, Parramatta and St Leonards).

The new amount of the levy will be adjusted in accordance with movements in the consumer price index from the 2010 financial year onwards.

Commencement

The amendments commence on assent but have effect from 1 July 2009.

Last updated: 16 April 2015