Your 7-Point Summary: Important Tax, Duty and Grant Guidelines from the NSW Office of State Revenue

The Office of State Revenue (OSR) in NSW has recently updated details of tax, duty and grant guidelines in line with important changes implemented as of 1 January 2016. A number of free information seminars in the form of a roadshow were recently held designed to provide key updates to the community. Highlights of the changes include the following:

Payroll and Land Tax

1. Payroll tax

The NSW payroll tax threshold for the 2015/16 financial year remains unchanged at $750,000. The payroll tax rate has also remained unchanged at 5.45%.
For full details of entitlements, including steps to apply for a refund of overpayment, refer to the current payroll tax guidelines.

2. Land Tax

From 1 January 2016, there have been a number of land tax adjustments:
• Land Tax threshold – increased to $482,000, with tax payable of $100 plus 1.6% of land value above the threshold (up to the premium threshold)
• Premium Land threshold – increased to $2,947,000, with tax payable of $39,540 plus 2% of land value above the threshold
It is important to note that not all land is taxable. For a full list of exempt land, details on land tax liability or to register, please visit the Land Tax guidelines.

Home and Business grants

There are a number of significant changes made to grants available to residents and businesses of NSW.

3. First Home Owner Grant (FHOG)

The FHOG has reduced from 1 January 2016 and currently stands at $10,000, down from $15,000. It is available to eligible applicants on newly built or purchased homes up to a value of $750,000.
Stamp Duty concessions continue to be available for first homeowners too.
Full details of the First Home Owner Grant and current eligibility criteria, as well as details about stamp duty concessions are available now.

4. New Home Grant (NHG)

Introduced on 1 July 2012, and designed to stimulate the construction of new homes in NSW, the NHG not only offers $5000 towards the purchase of new homes, off the plan homes and vacant land purchased with a view to construction, but a stamp duty reduction also.
Owner-occupiers, investors, companies and trusts are eligible to apply for the grant but not if a FHOG has already been received for the same property.
Read more about the New Home Grant eligibility criteria here.

5. Small Business Grant (SBG)

The SBG, introduced on 1 July 2015, was purposely designed to encourage the expansion of local small businesses. The 4-year scheme, scheduled to end 30 June 2019, offers non-payroll tax paying businesses, $2000 towards the employment of new full time, part time or casual employees.
The grant, paid on the anniversary date of employment, must be claimed within 60 days of that date. Interested businesses must meet the Small Business Grant eligibility criteria and register online within 60 days of employment commencement. Newly incorporated businesses must register online prior to employing new employees.
Further details on the Small Business Grant are available online now.

6. Jobs Action Plan Rebate (JAPR)

The JAPR is an existing 8-year scheme offering payroll taxpayers a rebate off payroll tax liability. Eligible NSW businesses can receive up to $5,000 rebate for all new employees. To apply, complete the online registration form within 30 days of the commencement of a new employee.
Full details of the Jobs Action Plan Rebate and eligibility criteria are available online.

7. Stamp Duty

Stamp duty on mortgages, the sale of business assets, shares and units has been abolished from 1 July 2016. Any outstanding duties must be paid within three months otherwise late payment interest at a rate of 10.14% applies.

To find out more information about any changes to taxes, grants and duties or to discuss eligibility criteria, contact the Office of State Revenue in NSW via phone on 1300 241 869 or via email.