The 2023-24 NSW State Budget has a strong focus on tightening tax compliance, as well as changes to a number of exemptions and duties:
- Funding Revenue NSW to Target Tax Compliance
- Land Tax – Closing the loophole for Principal Place of Residence Exemption
- Landholder Duty – changes to threshold for acquiring a “significant interest” in a private trust
- Fixed and nominal duty amounts increased
This year’s NSW State Budget does not explicitly mention specific measures targeted at small businesses. However, it does mention some broader economic and infrastructure initiatives that could indirectly benefit small businesses. These include:
- Toll Reform: Introducing a two-year toll cap and streamlining motorway pricing
- Infrastructure and Transport: Investments in infrastructure projects, including road upgrades and improved public transportation
- Energy Relief and Reform: Addressing high energy costs through rebates and energy market reforms
- Disaster Relief: Funds allocated for natural disaster support and recovery programs.
Measures for First Home Buyers
The State Budget includes an expansion to the First Home Buyers (FHBs) Assistance Scheme to support FHBs with a stamp duty exemption for purchases up to $800,000 and a concession for purchases between $800,000 and $1 million.
Five out of every six first home buyers will pay no stamp duty, or a concessional rate after the Government expanded stamp duty exemptions and concessions from 1 July 2023. According to preliminary figures, more than 1,000 FHBs purchasing in the $650,000 to $800,000 range have availed themselves of the full exemption from stamp duty in July under the scheme.
The measures announced in the 2023-24 NSW State Budget can have implications for the business environment in New South Wales, including those for small businesses and are outlined in the Treasury and Revenue Legislation Amendment Bill 2023 expected to be implemented from 1 February 2024, once the Bill has been passed by Parliament.