Tax Measures from the NSW Budget 2024-25

The New South Wales Treasurer, the Hon Daniel Mookhey MLC, handed down the NSW state budget on Tuesday, 18 June. While there was a projected deficit of A$3.6 billion in 2024-25, there was some good news, especially for NSW medical centres.

Revenue Legislation Amendment Bill 2024 (NSW) introduced to the NSW Parliament the following measures relating to tax:

1. NSW Duty - The NSW surcharge purchaser duty rate will increase from 8% to 9% for surcharge duty transactions on or after 1 January 2025.

2. NSW Land Tax – Foreign investor surcharges will increase with the surcharge land tax on residential land owned by a foreign person increasing from 4% to 5% from 1 January 2025.

Land Tax Threshold—Indexation on the land tax thresholds for the 2025 and subsequent land tax years will remain at $1,075,000, and the premium rate threshold will remain at $6,571,000 (the same as the thresholds for the 2024 land tax year). 

3. NSW Payroll Tax - Medical centres paying wages to contractor general practitioners (GPs) will receive some NSW payroll tax relief, costing the NSW Government $188.8 million over four years.

  • Unpaid NSW payroll liabilities prior to 4 September 2024 will be exempt from payroll tax.
  • For payments on or after 4 September 2024, medical centres must meet requisite bulk-billing thresholds to be eligible for a payroll tax rebate. These thresholds are 
    • at least 80% of GP services bulk-billed in Metropolitan Sydney; and
    • at least 70% of GP services bulk billed elsewhere in the state.

4. Revenue NSW - Compliance Work - The NSW Government will also invest in opportunities to identify additional revenue by expanding three existing project areas within Revenue NSW, including land tax compliance revenue, reducing the write-off of tax debts and increasing prosecutions and enforcement to reduce tax avoidance. These measures are expected to increase NSW Revenue tax collections by $51 million in 2024-25 and $61 million in 2025-26.

Contact your Principal Adviser to understand better how these NSW budget measures might impact your business.