A $1.6 billion package of tax cuts aimed at easing pressure on families, farmers and small businesses has been announced as part of NSW Budget 2017-18.
Treasurer Dominic Perrottet said the tax reforms would ease the cost of living, doing business and purchasing a home.
“This Budget invests our State’s success into our people and communities, easing the tax burden in some cases and abolishing some taxes altogether,” Mr Perrottet said.
“Thanks to our strong financial management, we are not only in a position to deliver record infrastructure investment and strong future growth – but to roll back unnecessary taxes so our hard working families, farmers and businesses get a break.
“Families and social infrastructure are the center of our budget, and we want to help people looking to buy their first home with our housing affordability reforms – which include stamp duty exemptions for houses up to $650,000 and discounts for purchases up to $800,000.
“We are also abolishing the duty charged on lenders’ mortgage insurance, which is often required by banks to lend to first homebuyers with limited deposits, providing a saving of around $2,900 to someone buying an $800,000 property.
“As a Government always looking at reforms to better support our farmers, I’m proud to announce duties on crop and livestock insurance will be abolished from the start of next year.
“The changes will free up cash to help farmers grow and support our regions – a stronger regional economy means the whole state benefits.”
From 1 January 2018, the NSW Government will also abolish insurance duty for small businesses on commercial vehicle insurance (including aircraft), professional indemnity insurance, and product and public liability insurance.
The changes will apply to businesses with an aggregated turnover of less than $2 million.
“Small business is the lifeblood of the NSW economy and this Government is committed to easing the cost pressures business-owners face every single day.
“The measures announced today will save money for up to 600,000 small businesses, helping them to grow, securing the jobs they create and enabling them to prosper in a more competitive economy.
“For NSW to remain the engine room of the national economy enterprise must continue to flourish. Our reforms send a strong signal to the market that this State continues to be a great place to do business.”
“This Government has a strong record of cutting and reducing tax, and these tax cuts build on last year’s budget which abolished mortgage duty, share transfer duty and non-real transfer duty.”
“These tax reductions are expected to save farmers and NSW small businesses $330m over the next four years.
The tax reforms complement red-tape cutting initiatives such as Easy to do Business, which reduces the amount of time it takes to complete necessary paperwork to start a business.