NSW State tax changes | KPMG Australia
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NSW State tax changes

NSW State tax changes

Jane Crisp and Jenny Lee review newly introduced legislation that proposes changes to NSW state taxes.


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On 23 February 2017, the State Revenue Legislation Amendment Bill 2017 was introduced into the New South Wales (NSW) Parliament. The Bill will take effect on the date of assent.

Some of the key changes include:

Landholder duty

Landholder duty will include land the subject of a combined put and call option in the same way as land the subject of an uncompleted agreement for transfer. This means the grantor and grantee of a combined put and call option will both be taken to be entitled to the full value of the land.

Liability for landholder duty will arise when an agreement for the acquisition of shares or units is made if the target entity is a landholder at the date of the agreement but not on completion.

The Bill clarifies that a partnership or any trust does not block the tracing of land or goods upstream to a partner of the partnership or a beneficiary of the trust.

The definition of ‘associated persons’ has been amended to include circumstances where persons are associated with sub-trusts.

General anti-avoidance provision

The Bill introduces an amendment to allow the Chief Commissioner to determine the duty that would have been payable but for the scheme, having regard to a ‘reasonable alternative’ that achieves the same economic or commercial result as the scheme.

Merger of credit unions and ADIs

The Bill introduces an exemption from duty for the vesting of land as a consequence of the merger of credit unions or authorised deposit-taking institutions (ADIs) with mutual structures.

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