Gary Chiert and Dorian Beaver discuss a new set of guidelines for reputable developers that include stamp duty refunds and a proposed rebate on surcharges.
Ever wondered what makes a developer reputable? The New South Wales (NSW) Chief Commissioner will release guidelines on this and other particulars of the proposed developer rebate for NSW states taxes surcharges, which looks like being expanded based on a bill introduced in NSW.
Foreign owned acquirers and owners of NSW land are charged significantly higher rates of stamp duty and land tax. Similar surcharges apply in most other states. Consistent with its policy of increasing the supply of new homes, the NSW Government passed legislation which provided for a refund of these surcharges for certain developers (although it was not yet in force).
A new bill has been released which expands the scope of the refund and even allows an up-front exemption for ‘reputable’ developers.
There new bill makes three important changes:
The proposed changes are good news for developers, especially the reputable ones, but until the guidelines are released there is still substantial uncertainty.