The NSW Government has abolished business mortgage duty which cost Australian business over $200 million in FY2015.
As a part of the state’s budget, NSW Treasurer Gladys Berejiklian confirmed the government will abolish mortgage duty, along with share transfer duty and non-real transfer duty from July 1 this year.
“Last year alone there were 250,000 hits to business from these three taxes, amounting to over $400 million,” Berejiklian said.
Mortgage duty, a tax is charged on a business mortgage when used as security for another business transaction, cost businesses over $212 million in FY2015 alone. According to the NSW Treasury, 210,068 mortgage duty transactions were paid in the financial year, costing an average of $1,010 per transaction.
“While Labor wants to hit businesses with higher taxes and red tape, the NSW Liberals & Nationals appreciate supporting businesses supports economic growth and more jobs,” Treasurer Berejiklian said.
“Scrapping these taxes will provide businesses with certainty, improve economic efficiency and lower business operating and administration costs. This will help businesses grow, be more successful and employ more people – helping to drive economic growth.”