On 29 May 2013, the Government introduced the State Revenue Legislation Amendment Bill 2013 into the NSW Parliament. The Bill proposes to introduce stamp duty and land tax reforms that will form part of the 2013-14 State Budget.
The NSW Treasurer will hand down the State Budget on Tuesday, 18 June 2013.
The proposed measures offer no relief for NSW taxpayers. The main losers will be:
- Property developers;
- Miners; and
Primary production concession for landholder duty
In another blow to farmers (and developers who acquire interests in entities that own farm land), the landholder duty concession for primary producers will be abolished.
However, this measure will be deferred for five years.
In the meantime, the acquisition of a majority interest in a landholder that is a primary producer only attracts landholder duty if the landholder is ‘land-rich’ (which requires at least 80% of the value of all its property to be land). There is a claw-back under the current provisions if the landholder ceases to be a primary producer within five years of the relevant acquisition.