Page 1765 - Week 06 - Tuesday, 7 June 2016
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We are also giving small and medium businesses a further tax cut by increasing the payroll tax threshold, from $1.85 million to $2 million—the highest payroll-tax-free threshold in the nation.
Since 2012, we have lifted the tax-free threshold from $1.5 million to $2 million. This means about 200 local businesses no longer pay any payroll tax, and all businesses with a payroll of more than $2 million have received an annual tax cut of $34,250.
In this place we all know that conveyance duty is an unfair and inefficient tax that makes buying a property more expensive. That is why my government is reducing stamp duty every year.
We have cut conveyance duty by more than 30 per cent for three-quarters of residential property transactions and for half of commercial property transactions.
Stage Two of the reform program starts in 2017-18, and we will cut stamp duty even further.
Residential duty will be cut every year. By the completion of the second stage of reform in 2021-22, duty on an average Canberra home will be more than halved, saving the buyer of a $500,000 property $10,500.
For commercial property transactions below $1.5 million, duty will be cut by 50 per cent in 2017-18, and then abolished completely on 1 July 2018.
Large commercial transactions will also see a further duty cut and will attract a flat duty of 5 per cent—considerably lower than in New South Wales and Victoria.
Economic growth and diversification for Canberra
The Government’s goal is to accelerate Canberra’s development as a hub of innovation and progress.
In recent times, Canberra’s economy has transformed.
We have shifted from a city whose fortune relied on decisions of the Commonwealth to a resilient place with its own distinct voice. We have cemented our position as a regional hub in south-east New South Wales. We have attracted major international investors and drawcards such as IKEA and direct international flights through Singapore Airlines.
I am proud of this Government’s role in facilitating this transformation. We will continue to lead the development of our great city.
This budget drives further diversity in our economy.
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