A number of taxes and duties will be changing in early 2024 as a result of the NSW Government’s 2023-2024 State Budget.
Zero and low emission vehicle
From 1 January 2024, certain zero or low emissions vehicles will need to pay a road user charge and will no longer be exempt from motor vehicle registration duty.
New threshold for private unit trusts
From 1 February 2024:
- A new 20% significant acquisition threshold will now apply to most private unit trust landholders.
- The 50% acquisition threshold will be retained for acquisitions in wholesale unit trusts or imminent wholesale unit trusts that are registered with Revenue NSW.
- The threshold for the tracing of property through ‘linked entities’ of a landholder will reduce from 50% to 20%.
Corporate Reconstruction and Consolidations Concession
From 1 February 2024, the corporate reconstruction and consolidation transaction duty exemption will be replaced with a concession of 10% of the duty that would otherwise be payable. Applications for the full exemption can be made under transitional provisions.
Tax default interest
The interest rate applied to tax defaults is the sum of two amounts – a market rate component (the bank accepted bill rate) and a premium component (set at 8%). This amendment provides that interest (including the premium component) may only be remitted in accordance with guidelines made by the Chief Commissioner of State Revenue.
Guidelines will be available after 1 February 2024.
Increase in fixed and nominal duty amounts
From 1 February 2024, fixed or nominal duties will change:
- The $10 duty will increase to $20.
- The $50 duty will increase to $100 except when relating to Managed Investment Schemes, which will increase to $500.
- The $500 duty will increase to $750.
Coal royalties
Coal royalty rates will increase by 2.6%, effective from 1 July 2024.
This means:
- Open cut coal royalties will increase from 8.2% to 10.8%
- Underground coal royalties will increase from 7.2% to 9.8%.
- Deep underground coal royalties will increase from 6.2% to 8.8%.
Principal place of residence land tax exemption
From 1 February 2024, the principal place of residence land tax exemption will only be available to a resident who owns an interest of at least 25% in the property.
Those who already claim the principal place of residence exemption but own less than a 25% interest in the land may continue to claim the exemption for the 2024 and 2025 land tax years.
For more information visit revenue.nsw.gov.au
