The Bligh Government has delayed the abolition of the transfer duty on core business assets in today’s Budget. Under the Intergovernmental
The Bligh Government has delayed the abolition of the transfer duty on core business assets in today’s Budget.
Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA), the State had agreed to remove transfer duty on core business assets by 2011.
However, Budget documents reveal that “in light of the tighter fiscal conditions” this will now be delayed until July 1, 2013.
The Government claims the new date is “in accordance” with the timeframe included in the new IGA announced in the 2005-06 Budget – and points to the $900 million-plus in annual savings delivered to Queenslanders through the abolition of other taxes covered b y the IGA, including transfer duty on quoted marketable securities and debits tax.
BDO Kendall’s partner Dennis Lin says: “This means that stamp duty continues to be paid on the transfer of assets [until 2013]”.
While there were no tax or royalty increases in the Budget, Lin adds that businesses will continue to be hit hard by payroll tax obligations.
A new $15 million payroll tax incentive has been introduced for businesses, yet this only stretches as far as apprentices and trainees, he notes.
This will give employers a 25 percent payroll tax rebate on the eligible wages of apprentices and trainees in 2009-10.
In addition, the land tax surcharge of 0.5 percent will remain in place, Lin points out.
On the upside, an instalment payment option for land tax will be introduced in 2010-11.
And in 2009-10, the payment period will be increased from 30 days to 90 days as an interim measure.
There has also been an increase in the threshold for first home buyers purchasing vacant land from $150,000 to $250,000, providing savings of up to $5,675.
A partial concession will also be provided for first home buyers purchasing vacant land valued up to $400,000.