2023 State Taxes Outlook

Introduction

As we start the new year, we wrap up some of the significant stamp duty and land tax changes and publications that happened over 2022 and note a few things to look out for in 2023 that were flagged in 2022.  With commentators forecasting a drop in housing values in 2023 and investors remaining cautious with interest rate rises, it will be interesting to see how this will influence state tax policy given the continued heavy reliance on property for state revenue.  

NSW

• First Home Buyer Choice legislation enacted https://www.nsw.gov.au/initiative/first-home-buyer-choice
• New ‘change of beneficial ownership’ dutiable transaction
• Amendments to the Taxation Administration Act 1996 including in relation to tax avoidance schemes and doubling the rate of penalty tax payable for a tax default by a significant global entity. Refer to website guidance
• New CPN 025 Change in beneficial ownership
• New CPN 027 Leases and change in beneficial ownership
• New DUT 017v2 Variations of Trust
• New DUT 031v2 Declaration of trust in an agreement for sale
• New G 013v2 Exemption from Surcharge for Certain Development by Australian Based Developers that are Foreign Persons
• New CPN 023 Exemption Approval for foreign Australian based developers
• New CPN 024 Interest and penalty tax guidelines
• Increase to foreign surcharge land tax to 4% 2023 land tax year
• KWM NSW 2022 budget update

Victoria

• Windfall Gains Tax (WGT) exemption for universities enacted (WGT to apply from 1 July 2023)
• WGT website guidance published https://www.sro.vic.gov.au/windfall-gains-tax
• New LTA-009 Land tax charity exemption
• New DA-047v3 Landholder duty - duty concession interposition unit trust between stapled security
• New LTA-010 Land Tax Exemption - Primary Production Land
• New LTA-011 Land Tax - Primary Production Exemption Land in Urban Zone
• Draft rulings to watch: Land transfer duty: Acquisition economic entitlements relation relevant land service fees
• KWM Victorian 2022 budget update

Tasmania

• New Tasmanian-based foreign developers relief from foreign investor duty surcharge (FIDS) and other FIDS changes FIDS amendments factsheet 2022
• New Foreign Investor Land Tax Surcharge of 2% Foreign investor land tax surcharge factsheet
• KWM Tasmanian 2022 budget update

Queensland

• New DA000.16.3 Administrative arrangement - duty exemptions for eligible small business restructures
• Exemptions for particular duties for small business restructures enacted
• Interstate landholdings land tax measure abandoned
• KWM Queensland 2022 budget update

Western Australia

• 2022/23 Budget announced land tax relief for build-to-rent developments announced to apply from 1 July 2023 – not enacted as yet
• Reduction of general transfer duty rate
• Removal of duty on prospecting licences and derivative mining rights
• New Duties Fact Sheet Derivative Mining Rights
• New Duties Fact Sheet Farm-in agreements
• New Commissioner’s Practice: DA 54 - Farm-in agreements
• New DA 16: Exploration for Farm-in Transactions
• New Circular 19 - Relief from duty for eligible farm-in agreements
• New Commissioner’s Practice: DA 42: Certain Transactions Involving Mining Tenements (valuation)
• New Duties Fact Sheet Business Assets
• New Duties Fact Sheet Transfer Duty Overview
• New Duties Fact Sheet Transfer of Residential Land
• New Commissioner’s Practice: DA 53 - Contingent Consideration
• New DA 19.2: Applying for a Connected Entities Exemption
• New DA 25.1: Substantially One Arrangement
• KWM Western Australia 2022 budget update

South Australia

• Update to IC 103 Stamp Duty on Conveyance or Transfers of Non-residential, Non-primary Production Real Property
• Updated Stamp duty document guide - self-determined
• Updated Stamp duty document guide - assessment by Commissioner (Opinion)
• 2021/22 Budget announcement for BTR land tax reduction to apply from 30 June 2022 – legislation still yet to be passed
• Updated Land tax publications released
• South Australian 2022 budget overview

ACT

• From 1 July 2022, commercial properties with a dutiable value of $1,700,000 or less will pay no conveyance duty
• From 1 July 2022, eligible owner-occupier transactions have a lower rate of duty and an increased lowest rate threshold
• ACT 2022 Budget at a glance

NT

• Abolition of the property activation levy from 1 July 2022, which imposed a charge on vacant land and unoccupied buildings in the Darwin CBD
• New stamp duty exemption for house and land packages and speculative builds from 1 July 2022
• KWM Northern Territory 2022 budget update