The NSW Budget 2013-14 was handed down on 18 June 2013. NSW Treasurer Mike Baird announced that the payroll tax threshold will be increased from $689,000 to $750,000 from 1 July 2013, and that indexation will be removed. Mr Baird also announced that the “Jobs Action Plan” payroll tax rebate will be extended for another 2 years, until 30 June 2015, and that the rebate will be increased from $4,000 to $5,000 for each new job. To encourage employers to retain their new staff, the rebate will be paid as $2,000 on the first anniversary and $3,000 on the second anniversary. Businesses will also no longer need to repay the first year’s rebate if the new staff member is no longer employed on the second anniversary. The 100,000 jobs cap will also be removed. The NSW Office of State Revenue (OSR) has updated its website information on payroll tax and the Jobs Action Plan rebate scheme.
The Budget also confirmed the NSW Government’s previous announcement that it would defer the abolition of certain state taxes to partly fund NSW’s share of the Gonski national education reforms, securing $5bn in additional funding for NSW schools. The affected taxes include stamp duty on business mortgages, non-quoted marketable securities, and transfer duty on non-real business transfers (goodwill, patents and intellectual property).
As part of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, NSW had agreed to abolish various duties and taxes. A number of IGA taxes have already been abolished. However, the Budget confirms the remaining taxes will “now be retained to partly fund commitments under the National Education Reform Agreement”. The Budget papers then states that the “need to retain these taxes will be reassessed when the low value GST import threshold is lowered”. The Budget papers goes on to state that NSW is “working with other jurisdictions and the Australian Government to look at ways in which the current threshold can be reduced significantly in a cost effective way” and that the NSW Government “seeks rapid implementation of the necessary reforms”.
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