Thousands of small and family-run businesses across NSW could be spared additional stamp duty costs under a proposal aimed at easing financial pressure and reducing red tape.
Business NSW has backed a commitment from the State Government to prevent businesses from facing stamp duty liabilities when transitioning to new federal trust arrangements.
The proposal follows legislation before Federal Parliament seeking to increase taxes on discretionary and family trusts, commonly used by small and medium-sized businesses.
Business NSW Mid North Coast Regional Director Rod Barnaby said the changes would provide greater certainty for business owners already dealing with rising costs, economic uncertainty and growing compliance requirements.
“Business owners have enough on their plate without worrying about whether opting into a new federal tax arrangement could trigger a significant stamp duty bill,” Barnaby said.
“Our latest Business Conditions Survey found 35 per cent of businesses want reducing taxes and charges to be the top priority for the next NSW Government.
“That highlights the importance of ensuring policy changes don’t create additional costs or complexity for small businesses.”
Under the commitment, a re-elected Labor Government would amend regulations to ensure businesses are not charged NSW stamp duty for initially electing to become an Excluded Election Trust.
The measure is intended to protect businesses from unexpected tax liabilities as they adapt to changes in federal legislation.
Consultation with small business organisations and industry representatives would begin once the federal legislation is finalised.
Business NSW says the proposed amendment would help protect small businesses from further financial and administrative burdens.
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