July 1 Stamp Duty Changes by Paul Anderson | July 2007 Area of Expertise | Business & Property
Two changes to stamp duty came into force on 1 July 2007, respectively affecting hire of goods and the parking space levy.
Hire of Goods The stamp duty on the hire of goods has been abolished as from 1 July 2007. The abolition was ﬁrst announced by the New South Wales Treasurer as part of the 2006 Budget. The relevant legislation is the Duties Amendment (Abolition of State Taxes) Act 2006. Under the legislation, a hire of goods is an arrangement under which goods are, or may be used any time by a person other than the person hiring out the goods. It can take any form and does not need to be in writing. Different arrangements apply to the imposition and payment of duty according to whether the hiring is done by a person who is in the business of hiring out goods or by another person. “Goods” includes all chattels personal and ﬁxtures severable from the realty but does not include money, livestock or things in action. There are two kinds of hire of goods: •
An equipment ﬁnancing arrangement; and
An ordinary hire of goods.
An equipment ﬁnancing arrangement is either: •
A hire purchase agreement; or
Some other agreement for a term of nine months or more where the ﬁnal payment is payable not earlier than 8 months after the arrangement commenced.
The abolition will clearly be welcomed by any business involved in the hire of goods such as customers of ﬁnancial institutions, video hire stores and equipment hire businesses.
T U R KSLEGAL
Parking Space Levy From 1 July 2007 the parking space levy rate has increased in category 1 to $930.00 per space from $900.00 per space and in category 2 the rate has increased to $460.00 per space from $450.00 per space. Category 1 applies to owners of non residential parking spaces in Sydney, North Sydney and Milsons Point. Category 2 applies to owners of non residential parking spaces in Bondi Junction, Chatswood, Parramatta and St Leonards.
For more information, please contact: Paul Anderson Partner T: 02 8257 5742 email@example.com
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