After years of delays, it seems that the New South Wales
Government will on 1 July 2016 finally make good on its promises to
abolish a raft of duties. Marketable Securities Duty, Business
Assets Duty and Mortgage Duty, all previously collected by the
Office of State Revenue, will no longer be payable at of the turn
of the financial year.
The NSW State Government promised the abolition of certain
duties as a consequence of the introduction of the Goods and
Services Tax on 1 July 2000. It now looks almost certain to follow
through on abolishing a raft of duties at the turn of the financial
Mortgage Duty, for mortgages executed on or
after 1 July, will not be liable to duty. Also, further advances
made on or after 1 July, irrespective of the date of the mortgage,
will no longer be liable to duty. Click here for further mortgage
and caveat related duty abolitions.
Business Assets Duty, which is ordinarily
payable on the transfer of business assets such as goodwill,
intellectual property and certain statutory licences will no longer
be payable. For more information on abolition of this duty,
including anti-avoidance measures, click here.
Marketable Securities (shares and units) Duty,
which has been payable for the transfer of securities in New South
Wales, will be abolished from 1 July 2016. For further information
on abolition of these and related duties, on where duty is still
payable, as well as anti-avoidance measures, click here.
Some anti-avoidance measures have been put in place to ensure
that a transaction which occurred after 1 July was not made or
entered into pursuant to another arrangement prior to 1 July with
the main purpose being to defer the transfer or transaction to
WHAT DOES THIS MEAN FOR YOU?
The delivery of this long held promise by the New South Wales
Government could mean significant savings for those entering into
transactions after 1 July 2016. If you are considering purchasing,
or selling assets, or have begun such a process, it may be worth
seeking some advice about the timing of the transaction.
ATO has released 2 draft fact sheets relating to the 2010 amendments to corporate law and tax in relation to dividends.
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