Changes to Stamp Duty put on hold
The NSW Government’s stamp duty abolition timetable has been deferred, again.
Unlike previous deferrals, where a new date was set for the abolition of the duty, the latest announcement of a temporary deferral essentially suspends plans for the abolition of a number of stamp duty impost indefinitely. New amendments to the Duties Act 1997 will need to be passed before a new date can be set.
Prior to the most recent announcement, stamp duty was to be abolished on 1 July 2013 on the following transactions:
- business assets (excluding land)
- transfers of marketable securities (shares and units)
The indefinite deferral of these has been linked to the need to fund the recently announced Gonski education reforms.
All references to duty abolition have been removed from the Office of State Revenue’s website.
Given the NSW Government’s track record with deferring duty abolitions, most clients have not been holding their breath for the abolitions to take place.
Consequently, this recent announcement may not mean much for most clients. However, those who were planning transactions around the abolition timetable will have to reconsider the costs involved in proceeding.
Take note that some of the above duties are only charged on assets in NSW. For further information, please call us on 02 4925 2077