The NSW Treasurer, Eric Roozendahl yesterday released a
mini-budget in which the State's budget position has moved from
a projected surplus of $700 million at the time of the 07/08 Budget
to a $917 million deficit disclosed in the mini-budget.
Cost cutting and deferral of expenditure as well as revenue
raising measures were broad and affected almost all portfolio
areas. Among the changes announced in the mini-budget affecting the
property sector are:
Land tax - A marginal rate of 2 per cent will be introduced from
the 2009 land tax year for taxpayers with total taxable land
holdings exceeding $2.25 million. Land holdings below this amount
will remain subject to the 1.6 per cent rate. The marginal rate
threshold will be indexed each year. The existing land tax
exemptions for principal places of residence and rural properties
will remain intact.
Stamp duty - The current 'land-rich' model for imposing
duty on the acquisition of a significant interest in an entity
requires the entity to hold land with a value of more than $2
million representing more than 60 per cent of the net value of the
entity. From 1 July 2009, this will be replaced with a
"land-holder" model, which does away with the
proportional test. This is in line with current practice in WA, ACT
and the NT.
The abolition of stamp duty on mortgages for business loans,
transfer of unquoted securities and non-land business assets has
been deferred until 1 July 2012.
Parking space levies - Parking space levies in the Sydney CBD,
North Sydney and Milsons Point areas will increase from $950 to
$2,000p.a. From 1 July 2009. In the St Leonards, Chatswood,
Parramatta and Bondi Junction business areas, the levy will
increase from $470 to $710p.a.
For a period of one year commencing on 11 November 2008 grants
under the First Home Owners Scheme ('FHOS') will be
increased by $3,000.
FHOS grants only available for property purchases less than
$750,000 from 1 July 2009.
Review of developer contributions to take place in first half
Sale (under 99-year leases) of Australian Technology Park and
Sydney Harbour Foreshore Authority commercial assets and sale of
surplus lands of other departments.
Property transfer fee at the Land Titles Office to increase
from $92 to $184 per transaction
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Exemptions or concessions on stamp duty could apply when contemplating the purchase or transfer of NSW real estate.
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