NSW Government 2024-2025 State Budget: Key Updates on Taxes and Duties
At Bangalow Conveyancing, keeping our clients updated on legislative changes that impact property transactions is a priority. The NSW Government’s 2024-2025 State Budget includes notable amendments to various taxes and duties, aimed at adjusting revenue streams and affecting foreign property investors. Here’s a brief overview of what you need to know:
Amendments to the Duties Act 1997
Increase in Surcharge Purchaser Duty Rate
Starting 1 January 2025, the surcharge purchaser duty rate will increase from 8% to 9%. This change primarily impacts foreign buyers of residential property. If you’re planning to purchase property under this category, it’s essential to factor this increased rate into your financial planning.
Amendments to the Land Tax Act 1956
Higher Surcharge on Residential Land for Foreign Owners
From the 2024 land tax year, the surcharge on residential land owned by foreign individuals will rise from 4% to 5%. This surcharge is based on land ownership at midnight on 31 December each year. Foreign owners of residential land should prepare for this increased financial obligation, which will affect the overall cost of maintaining such properties.
Amendments to the Land Tax Management Act 1956
Land Tax Thresholds Unchanged
For the 2025 and subsequent land tax years, the land tax threshold will remain at $1,075,000, and the premium rate threshold will stay at $6,571,000. While these thresholds remain unchanged, property values and subsequent tax liabilities may still fluctuate based on market conditions.
Key Takeaways for Property Owners and Investors
- Foreign Property Investors: Be prepared for increased costs due to higher surcharge purchaser duty and land tax rates.
- Stay Informed: Regularly check Revenue NSW’s website for detailed guidance and updates on how these changes may impact your property transactions.
- Financial Planning: Incorporate these changes into your financial plans to avoid unexpected expenses.
As your local conveyancer, we’re here to help with any questions you have on these upcoming changes. We’re by your side to guide you through any queries and ensure you’re fully informed. Feel free to contact us for personalised advice and support.
