Tas: Foreign investor land tax surcharge and duties amendment Bills receive assent
The Land Tax Amendment (Foreign Investors) Bill 2022 (Tas) and the Land Tax Rating Amendment (Foreign Investors) Bill 2022 (Tas) have both received royal assent and are now law. Consequently, a 2% land tax surcharge for foreign investors will have effect in Tasmania from 1 July 2022. The operation of the surcharge was discussed in more detail in the Birchstone Brief for the week ended 27 May 2022.
The Duties Amendment Bill 2022 (Tas) has also received royal assent and is now law. The Act amends the Duties Act 2001 (Tas) to:
- clarify the operation of the foreign investor duty surcharge (applying retrospectively from 1 July 2018);
- provide relief from the duty surcharge from 1 July 2022 for Tasmanian-based foreign developers that build at least 50 residential dwellings in Tasmania in a 12-month period; and
- ensure property purchases funded by non-interest based finance are only subject to duty once.
Qld: Land tax and Budget measures Bill introduced and passed
The Revenue Legislation Amendment Bill 2022 (Qld), which makes miscellaneous amendments to certain State revenue statutes in connection with land tax reform and the State’s 2022-23 Budget, was introduced into the Legislative Assembly on 21 June and passed through the Assembly on 24 June.
Once it receives assent, the Bill will:
- amend the Land Tax Act 2010 (Qld) to implement a reform announced in the 2021-22 Budget Update – Mid Year Fiscal and Economic Review by enabling the value of interstate landholdings to be accounted for when determining a taxpayer’s Queensland land tax payable from the 2023-24 financial year; and
- amend the Payroll Tax Act 1971 (Qld) and the Duties Act 2001 (Qld) to implement the 2022-23 Budget measures discussed above.
NSW: Budget measures Bill awaits assent
The State Revenue Legislation Amendment Bill 2022 (NSW) was introduced into the NSW Legislative Assembly on 21 June, passed both Houses on 23 June, and is currently awaiting royal assent. Once it receives assent, the Bill will make amendments to the Land Tax Act 1956 (NSW), the Payroll Tax Act 2007 (NSW) and the Betting Act 2001 (NSW) to implement the 2022-23 Budget measures discussed above. It will also make amendments to the Totalizator Act 1997 (NSW) consequent to the amendments to the Betting Act.
Effective life Determination issued
The ATO has issued the Income Tax (Effective Life of Depreciating Assets) Amendment Determination (No 1) 2022. The Determination amends the Income Tax (Effective Life of Depreciating Assets) Determination 2015 by updating the Commissioner’s effective life schedule for depreciating assets and applies from 1 July 2022.
2022-23 PAYG withholding schedules issued
A legislative instrument (the Taxation Administration Withholding Schedules 2022) setting out 15 withholding schedules specifying the amount, formula and procedures for working out the amount to be withheld from an entity under the Pay As You Go (PAYG) system has been issued by the Commissioner.