Red tape and inefficiencies relating to prospecting licences will be reduced in Western Australia, with the State Government introducing the Duties Amendment Bill 2022 as part of the upcoming budget.
According to the Government, the bill will reduce duties for some taxpayers and simplify tax administration, delivering on an election commitment to reduce red tape.
From July 1, 2022, certain transfers of prospecting licences can be registered with the Department of Mines, Industry Regulation and Safety without being lodged for duty assessment.
The vehicle licence duty has been reviewed to better align with industry practice. An exemption will apply where a vehicle purchase is cancelled prior to a purchaser taking possession of the vehicle, or the vehicle is returned for a full refund or replacement vehicle.
A key measure in the bill is the reduction of the general rate of duty for non-residential property from July 1, 2022 to align it with the residential rate.
In other benefits for mining companies, the change will assist purchasers of non-residential property, such as commercial property, vacant land and business assets, valued at more than $200,000. A person buying non-residential property valued at $725,000 or more will save $2800 duty under the reduced rate.
Finance Minister Tony Buti said this was another WA Government commitment to reducing red tape and simplifying taxes for Western Australians and businesses.
“No taxpayers will be worse off under these changes and we expect Western Australians will save around $7.3 million in duty, next financial year,” he said.
“The McGowan Government is pleased to reduce the tax burden for some taxpayers and simplify tax administration.
“This will also bring a number of tax processes in line with industry practices.”