The NSW Government has shelved proposed legislation that would have increased stamp duty on sales and transfers of mining rights.
Stamp duty is currently payable in NSW on sales of mining leases and mineral claims issued under the Mining Act 1992 (NSW). About 12 months ago, the Government introduced a Bill into Parliament that (if passed in its original form) would have significantly expanded the duty net. The Bill recently passed through Parliament but only after it was stripped of several key measures, including a proposal to increase stamp duty on transfers of mining rights.
The new state Treasurer, Mr Andrew Constance MP explained that the removal of those key measures would “allow for further consultation with industry and professional bodies”.
The law in NSW as it currently stands is:
- Duty is assessed on sales and transfers of mining leases and mineral claims.
- The value of a mining leases and mineral claims is determined without regard to the mining information about the tenement.
- Duty is not assessed on sales and transfers of:
- exploration licences
- assessment leases
- opal prospecting claims
- carbon sequestration rights, and
- petroleum titles under onshore and offshore legislation applicable to NSW.
- Where a transaction involves acquisitions of shares or units, the following things are not treated as land for the purposes of assessing a liability for landholder duty:
- exploration licences, assessment leases, opal prospecting claims, carbon sequestration rights and petroleum titles, and
- mining information in relation to mining leases and mineral claims.
Mr Constance MP will hand down his first Budget on Tuesday, 17 June 2014. Gadens will monitor the Budget for any developments affecting mining and petroleum rights.