City projects benefit from State Budget

By Adrian Raftery

Business owners, builders and property buyers were the big winners from the NSW budget released earlier this month.

The planned sale of NSW Lotteries has resulted in NSW Treasurer Eric Roozendaal being able to announce a budget surplus of $101 million for the 2009/10 financial year, with no new taxes. Budget surpluses are also forecast out to 2013-14.

The City of Sydney will benefit from the NSW Government investing $62.2 billion in infrastructure over the next four years.

This includes a $152 million upgrade of Sydney Opera House to improve public safety, security and vehicle access, a major building project at Ultimo TAFE, an upgrade of the John Maddison Tower/Downing Centre court complex and $30 million for the construction of Barangaroo Headland Park.

Transportation projects include easy access upgrades to Central, Martin Place and St James train stations, $20 million for a pedestrian tunnel from Wynyard and 100 new bendy buses in the next year.

Transport spending outside the CBD include an Inner West Busway along Victoria Road and the $55M light rail line extension from Dulwich Hill to Lilyfield.

From 1 July 2010, the payroll tax rate will reduce from 5.65 per cent to 5.50 per cent and then down to 5.45 per cent from 1 January 2011. The payroll tax threshold increases from $638,000 to $658,000 whilst paternity leave, up to 14 weeks, will be exempt in the definition of wages paid. The two cuts are expected to save $3,814 per annum for businesses with a $2 million payroll.

Buyers of new dwellings that cost up to $600,000 will receive a 25% cut in normal stamp duties, worth up to $5,623, if building has already started on the property.

Buyers purchasing “off-the-plan” between 1 July 2010 and 30 June 2012, will pay zero stamp duty. It is expected that this concession, worth up to $22,490 per home, will assist the financing of new developments and help new home buyers as the NSW Government looks to encourage new home construction and boost housing supply.

For two years, from 1 July 2010, people aged over 65 will be able to sell their family home and buy a newly constructed home for under $600,000 and pay zero transfer duty.

The Insurance Protection Tax, brought in after the collapse of HIH, is set to be abolished from 1 July 2011. Hopefully the insurance companies will pass on the $69M in annual savings to policyholders … or at least put a hold on any short term premium rises.

There will also be a smile on a few pub owners’ faces as lower gaming machine tax rates will apply to hotels from 1 July.