The Taxation Related Legislation (Housing Availability and Payroll Relief) Bill 2018 received Assent on 29 June 2018 as Act No 5 of 2018. It had passed the Parliament with 2 amendments from the Legislative Council concerning the removal of the reference to “greater Hobart area” and its definition from the new section 19E of the Land Tax Act 2000.
The Bill will:
- amend the Payroll Tax Act 2008 to introduce a reduced rate of payroll tax (4%) for wages between $1.25 million and $2 million and will commence on 1 July 2018. Previously, the rate was 6.1% above $1.25m.
- amend the Payroll Tax Act 2008 to provide a 3-year payroll tax exemption for wages paid by a business to its employees in regional Tasmania, where an interstate business relocates to Tasmania and establishes its operations in a regional area.
- amend the Payroll Tax Rebate (Apprentices, Trainees and Youth Employees) Act 2017 to extend the Payroll Tax Rebate Scheme for apprentices and trainees in areas of skills shortages, to 30 June 2021;
- amend the Duties Act 2001 to implement a Foreign Investor Duty Surcharge of an additional 3% points, of the dutiable value, for all purchases of residential property by foreign residents and an additional half per cent of the dutiable value on all purchases of primary production land by foreign residents;
- amend the Duties Act 2001 to provide a 50% duty concession to first home buyers of established homes with a dutiable value not exceeding $400,000, for a 12 month period; and
- amend the Duties Act 2001 to provide a 50% duty concession to eligible pensioners that sell their existing home and downsize to a home or unit with a dutiable value not exceeding $400,000 and a lower dutiable value than their existing home.
- amend the Land Tax Act 2000 to provide a 3-year land tax exemption for all newly built housing that is made available for long-term rental; and
- amend the First Home Owner Grant Act 2000 to extend the FHOG at $20,000 for a further 12 months, until 30 June 2019.
FJM 8.7.18
[Tasmanian Parliament: Bills Tracker, Bill as Passed, Clause Notes, Fact Sheet; LTN 124, 3/7/18; Tax Month – July 2018]
Study questions (answers available)
- Does the Act reduce the rate of Payroll Tax from 6.1% to 4% on wages between $1.25m and $2m?
- Is there also a 3 year payroll tax holiday for anyone relocating their business into a Tasmanian regional area?
- Is the Foreign Investor Duty Surcharge, on purchase of residential land, and additional 3% points?
- Does the 50% duty concession apply to all first home buyers?
- Does a similar 50% duty concession apply to all eligible pensioners who ‘downsize’?
- Is the Tasmanian ‘First Home Owners Grant’ of $20k extended for one more year, to 30 July 2019?
