NSW Tax Changes for Foreign Owners, Bulk-Billing GPs and Government Accounts

Revenue Legislation Further Amendment Bill 2024

11 Feb 2025: Passed by Parliament and signed off by the governor.

This bill kicks in: TBA

Legislative Assembly

Legislative Council

Assent

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Topics

debt recovery first home grants investment vehicles land tax payroll tax stamp duty tax avoidance taxation

Introduced by: Michael Daley MP (ALP); The Hon Daniel Mookhey MLC (ALP)

Links to official parliament websites

Official page: progress through parliament

Official page: bill text and explanatory notes

Effects of this bill

If this bill passes, it means that:

The surcharge purchaser duty for foreign persons acquiring residential property will be increased from 8% to 9%, effective from January 1, 2025. This change applies to new transactions, but transitional provisions allow some pre-existing contracts to be taxed at the previous rate.
The surcharge land tax for foreign owners of residential property increases from 4% to 5%, starting from the 2024 land tax year. This surcharge applies to the taxable value of all residential land owned by foreign persons.
the land tax thresholds will be frozen at 2024 levels. From 2025 onwards, the general land tax threshold remains at $1,075,000, and the premium rate threshold is set at $6,571,000. These thresholds will no longer automatically adjust with inflation, potentially increasing land tax liabilities for property owners over time.
A partial payroll tax exemption (amount to be determined by regulations) is introduced for general practitioners who bulk bill most of their services. Medical centres in metropolitan Sydney need to bulk bill at least 80% of services, while centres elsewhere need to bulk bill 70%. Additionally, payroll tax relief applies to unpaid payroll taxes for certain periods before September 4, 2024.
The NSW Treasurer will be able to transfer funds between certain government accounts if it promotes the objectives of the Government Sector Finance Act, improving the flexibility of fund management within the state’s financial system.

The Debate

What different members said when this bill was debated:

Damien Tudehope LIB

“The Opposition supports the Revenue Legislation Further Amendment Bill 2024, which makes a series of technical and relatively minor changes to tax and revenue laws. The Coalition in government regularly updated tax and revenue laws to address new matters. The bill will amend eight separate Acts.”

Official source →

Courtney Houssos ALP

“I thank the Leader of the Opposition for his contribution and commend the bill to the House.”

Official source →

News articles and press releases

Revenue Legislation Further Amendment Bill 2024

Mr MICHAEL DALEY, Attorney General — 2024-10-16

I address each category of amendments in turn. First, I address amendments to State taxation legislation. The bill amends the Duties Act 1997, the Land Tax Management Act 1956, the Payroll Tax Act 2007 and the Taxation Administration Act 1996. I address the duties amendments in schedule 1 to the bill. The Duties Act 1997 amendments involve changes to the duty exemptions related to family farm transfers and relationship breakdowns to make them fairer; broadening the definition of qualified investor for landholder duty; clarifying the tax treatment of corporate collective investment vehicles; and several other minor amendments. The Duties Act 1997 currently provides a duty exemption for a family farm transfer—that is, a transfer of primary production land between family members in certain circumstances.