The NSW Budget from 17 November 2020 has outlined the State Government’s proposal to replace stamp duty with a broad based property tax. If implemented, it will comprise the biggest shift in state taxes since World War 2.
As it is still merely a proposal, it does not appear that the following year forecasts in the budget have taken such a move into account. That said, the Draft Report contained a number of approaches to manage the transition, and NSW Government material released yesterday indicates the Government’s current thinking on a preferred transition model.
Transitioning from duties to land tax (or a different “property tax”) will create winners and losers. We expect this will be difficult to message and manage. As a way of generating public buy-in to the proposal, a public consultation is now open until 15 March 2021.
Register your interest now to attend our workshops for effected industries in February 2021 ahead of the deadline for public consultation.