NSW state budget - Changes to duties
- 22 June 2016
Abolition of duty
From 1 July 2016 stamp duty has been abolished on the transfer of business assets in New South Wales.
This much delayed change means stamp duty will no longer be payable on agreements entered into on or after 1 July 2016 on transfers of:
- goodwill of businesses;
- intellectual property used in NSW;
- statutory licenses such as taxi licences and gaming machine entitlements.
Duty has also been abolished on transfers of:
- shares in NSW companies;
- units in a unit trust
Imposition of duty
From 21 June 2016 foreign buyers of residential property in NSW will pay a 4% stamp duty surcharge and an extra 0.75% land tax from 1 January 2017. This duty will be payable on all contracts entered into on or after 21 June 2016. Based on the median house price in Sydney of $995,804.00 the stamp duty for a foreign person will almost double from $40,305.00 to $80,137.00.
From 1 January 2017 foreign buyers of residential property in NSW will pay an extra 0.75% land tax.
These will not apply to Australian citizens, permanent residents of Australia or New Zealanders staying in Australia at least 200 days in the last 12 months.