A re-elected Minns Labor Government will make sure discretionary trusts moving into a new federal tax arrangement don’t get hit with stamp duty.
The pledge would see NSW set up an Australian-first state-level rollover relief scheme for trusts opting into the Federal Government’s transitional Excluded Election Trust (EET) arrangement.
“NSW needs small businesses to thrive,” said Treasurer Daniel Mookhey.
“We want them to grow.”
“We want them to hire more people.”
“We don’t want them to worry that their state is trying to make a windfall gain at their expense.”
NSW Labor says it will amend existing regulations to make clear that choosing to become an EET is not a taxable event. That removes the key uncertainty about whether using the federal pathway would attract state tax.
The change would be made after detailed consultation with key small business organisations and representatives. That consultation will start once Federal Parliament finalises its legislation.
The government says the move will free tens of thousands of NSW small businesses from uncertainty about how federal and state tax laws interact.
“While the Federal Government’s proposed tax changes are still some way off, we want businesses to have as much certainty as possible, as early as possible, so they can carry on with more confidence,” Mr Mookhey said.
“I am glad we have been able to work with the Federal Treasurer to make sure NSW is the first state to give its small businesses certainty with this practical solution.”
“We understand small businesses are under pressure right across NSW,” said Minister for Finance Courtney Houssos.
“We’re providing the confidence they need to continue their work.”
“Small businesses contribute so much to the state’s economy and these amendments will give them the certainty they need on this issue.”
“Small businesses in NSW deserve clarity when navigating tax changes and we are giving them that,” said Minister for Small Business Janelle Saffin.
“By advancing this approach, a re-elected Minns Labor Government will make sure small business owners can focus on doing what they do best: trading, investing, and creating local jobs.”
“We are committed to sitting down with key small business operators and their representatives to get this right, so that tens of thousands of family-run businesses across NSW can continue to run their business looking to the future with confidence.”
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