By Justin Byrne,Special Counsel and Hannah Byrn
The Treasury (Cost of Living) and Other Legislation Bill 2012 was introduced into Parliament by Queensland Treasurer Tim Nicholls late last week. If passed, the Bill will give effect to a number of key election commitments made by the LNP.
Here, special counsel Justin Byrne and solicitor Hannah Byrne outline the changes introduced by the Bill and how they will affect Queensland taxpayers.
Key changes
The Bill amends:
- the Duties Act 2001 to reinstate the transfer duty home concession, the previous transfer duty rate structure, and the previous phasing-out point of $550,000 for the reducing rebate for the transfer duty first home concession. These changes to duty will apply for transactions entered into on or after 1 July 2012;
- the Payroll Tax Act 1971 to increase the exemption threshold from $1 million to $1.1 million from 1 July 2012;
- the Electricity Act 1994 to freeze the current standard residential retail electricity tariff at 2011-12 prices for one year from 1 July 2012; and
- the Building Act 1975 and the Property Agents and Motor Dealers Act 2000 to remove the requirement to prepare and provide a sustainability declaration prior to the sale of residential dwellings.
How the Treasury (Cost of Living) and Other Legislation Bill will affect Queenslanders
The changes introduced by the Bill are part of the LNP Government's commitment to reducing the cost of living for Queensland families.
The Bill proposes to reinstate the principal place of residence concessional rate of transfer duty for the purchase of a home, which the LNP Government believes will save home buyers up to $7,000. The concession provides a one percent rate of transfer duty to the first $350,000, with duty at the general rates applying to any remaining part of the value of the home.
The increase in the payroll tax threshold means that 90 percent of Queensland employers will not be liable for payroll tax, and will save taxpayers $40 million in 2012/13.
The LNP Government also notes that freezing the standard electricity tariff will help families save around $120 this year.
The Bill is due to be debated in Parliament on 5 June, and many of the proposed changes are to have effect from 1 July this year.
Award-winning law firm HopgoodGanim offers commercially-focused advice, coupled with reliable and responsive service, to clients throughout Australia and across international borders.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.