New Accounting News

An update on some of the new tax laws that have been recently introduced in the state.

First and foremost, a new land tax surcharge was introduced on July 1, 2021, for foreign owners of residential property in New South Wales. The surcharge is an additional 0.75% of the land value, and it applies to properties that are not a person’s principal place of residence and are not used for commercial purposes. The surcharge is in addition to any other land tax that may be payable.

Another new tax law that was introduced on July 1, 2021, is a payroll tax threshold decrease from $900,000 to $850,000. This means that businesses with taxable wages above $850,000 will be required to pay payroll tax, whereas before they may have been exempt. This change is expected to impact a significant number of businesses in New South Wales.

Additionally, on July 1st, 2021, New South Wales Government also introduced a new Taxation Administration Act, that increases penalties and enforcement for Non-compliance of tax laws. This increase in penalties is intended to ensure that businesses and individuals comply with their tax obligations and to deter tax evasion.

New South Wales Government also announced that they will be increasing the number of audits and inspections carried out on businesses, as part of their efforts to increase tax compliance.

Finally, the New South Wales Government has also recently announced plans to introduce a state-based digital services tax. This tax is still in the planning stages, and no further details have been released yet but the government plans to implement this new tax in a way that it would not burden small businesses and startups.

As senior accountants, it’s our responsibility to stay current on the latest tax laws and regulations and to ensure that our clients are fully compliant with all of their tax obligations. We will be closely monitoring developments in these areas and will be happy to provide any assistance and guidance as needed.

It’s important to stay informed of these new tax laws and changes in regulations, so if you have any questions or concerns, please don’t hesitate to contact us. Our team of experts is ready to assist you in any way we can.