A re-elected Minns Labor Government will ensure discretionary trusts opting into the Federal Government's transitional Excluded Election Trust arrangement pay no stamp duty, by establishing an Australian-first state-level rollover relief scheme.
NSW Labor will amend existing regulations to make clear that the initial choice to become an Excluded Election Trust(EET) is not considered a taxable event.
This removes the key uncertainty about whether using the federal EET pathway will attract state taxation.
This regulatory change will take place after detailed consultation with key small business organisations and representatives.
This consultation will begin after Federal Parliament finalises the legislation.
The move will free tens of thousands of NSW small businesses from any uncertainty about how federal and state tax laws interact, so they can trade with confidence.
Treasurer Daniel Mookhey said:
"NSW needs small businesses to thrive. 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.
"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.
"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."
Minister for Finance Courtney Houssos said:
"We understand small businesses are under pressure right across NSW. 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."
Minister for Small Business Janelle Saffin said:
"Small businesses in NSW deserve clarity when navigating tax changes and we are giving them that.
"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."
