SYDNEY, 19 November 2020: On Tuesday 17 November 2020, the NSW Treasurer, The Hon. Dominic Perrottet MP, released the NSW State Budget, including some key plans and support for reform of our tax system. The Tax Institute is pleased to announce that the Treasurer will also be joining The Tax Summit: Project Reform next week, as a powerful voice for tax reform.
In his Budget speech, the Treasurer said, “For state governments, the reform with the greatest potential to unlock prosperity is tax. Report after report has recommended action, including our own Review of Federal Financial Relations.”
General Manager – Tax Policy and Advocacy at The Tax Institute, Scott Treatt, applauded the Treasurer’s much-needed leadership in the area of tax reform.
“Real tax reform is not achieved by tinkering at the edges. It takes a longer-term vision to achieve real tax reform, and this is a perspective The Hon. Dominic Perrottet MP has brought to the table,” Scott said.
The Tax Institute congratulates the Minister for his leadership in reforming State taxes and welcomes the opportunity to be a part of the consultation process in the plan to overhaul stamp duty particularly given its alignment to our current major endeavour, The Tax Summit: Project Reform.
The Minister seeks to achieve a system whereby a purchaser could elect to pay tax either upfront on the acquisition of a property (and continue to pay land tax annually where applicable) or alternatively pay an annual property tax based on the unimproved land value of the property (this would also absorb any applicable land tax liability).
It is proposed that once a property is subject to the annual property tax, it will remain subject to that tax for all subsequent owners. Eligible first home buyers, however, would now become eligible to an upfront grant of up to $25,000 to either apply toward the tax or other home refurbishments.
The Tax Institute also warmly welcomes the reform to the NSW Payroll Tax regime, permanently increasing the threshold from $1 million to $1.2 million and assisting NSW business in this present environment by reducing the rate from 5.45% to 4.85% for a 2-year period, with effect from 1 July 2020.
The Tax Summit: Project Reform, is an ambitious series of events, leading to a Virtual Summit in November, through which The Tax Institute is building a case for change in our tax system. The Virtual Summit event, held 24–25 November, is where we will bring together all the insights and ideas from the program of events to define the priorities of reform.
The Treasurer will be speaking in a panel session called Running the Gauntlet… How to effect change? on day 2 of the Summit event. He’ll be joined by other notable changemakers, including Rt Hon Sir Bill English, former Prime Minister of New Zealand, The Hon. Andrew Leigh MP, Shadow Assistant Minister for Treasury and Charities, Dr Julianne Jaques, CTA, Victorian Bar and Viva Hammer, Brandeis University.