NSW Budget 2023: Changes You Need To Know

Accounting and Tax
October 25, 2023

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The New South Wales (NSW) government recently unveiled a series of tax measures to impact tax revenue in the coming years substantially.

These changes are expected to generate an additional $4.1 billion in revenue over the forward estimates.

For Australian business owners who like to stay updated on the latest financial developments, we have broken down the essential modifications in an easy-to-understand manner.

1. Corporate Restructures Face New Stamp Duty Regulations

Effective 1 February 2024, corporate restructuring is one of the most significant changes in the NSW budget. Historically, corporate restructures were exempt from stamp duty in the state, making them a cost-effective way to adjust business structures. However, the NSW government is set to impose a 10 per cent tax on corporate restructuring starting from the specified date.

In practical terms, this means that when businesses undergo structural changes, such as mergers, acquisitions, or reorganisations, they will be required to pay a 10 per cent stamp duty on the value of the transaction. This change aims to bolster the state’s revenue and ensure that businesses contribute their fair share in the event of significant corporate reshuffling.

2. Tightening of Landholder Duty for Trusts

The second substantial change in the NSW budget relates to the landholder duty for trusts. This change centres on the definition of a “significant interest” in a private unit trust and is set to reduce the threshold for acquiring such interest from 50 to 20 per cent.

Previously, an entity needed to acquire at least a 50 per cent interest in a private unit trust to trigger landholder duty. However, the revised threshold of 20 per cent will broaden the scope of transactions subject to this duty. Consequently, businesses and individuals acquiring significant interest in trusts will more likely incur landholder duty.

This change is designed to prevent trust structures from being used to avoid landholder duty, enhancing the state’s revenue collection capabilities while reinforcing the equity of the tax system.

3. Introduction of a Road User Charge for Low-Emission Vehicles

Lastly, another pivotal change to note in the NSW budget is the introduction of a Road User Charge (RUC) for zero and low-emission vehicles, practical from 1 July 2027 or when battery electric vehicles (EVs) constitute 30 per cent of new light vehicle registrations, whichever comes first.

Introducing a Road User Charge implies that owners of zero and low-emission vehicles will be required to pay a fee that helps fund road infrastructure, similar to the fuel excise tax paid by conventional vehicle owners. This change aligns with the broader efforts to ensure that all road users contribute their fair share to maintaining and developing the state’s road network.

The RUC for zero and low-emission vehicles aims to balance encouraging environmentally friendly transportation options and sustaining the funding for road infrastructure projects. As battery EV adoption increases, this charge will be implemented to ensure equitable support for maintaining the roads.

Stay Up-To-Date With Obligations And Opportunities

The recent changes to the NSW budget have introduced a range of tax measures that will significantly impact the state’s revenue and financial landscape.

Business owners and individuals with professional accountants should stay informed about these modifications, as they may affect their financial planning and transactions.

Staying up to date with these changes will enable businesses to make informed financial decisions and adapt to the evolving fiscal landscape in New South Wales.

If you have any questions about how these changes will affect you, contact us today.

If you’re not actively managing your loan, chances are you’re paying more than you need to — and missing out on savings of $50 a week or more.

Whether it’s a mortgage, personal loan, or asset finance, small tweaks can unlock big savings. At AFP Finance & Loans, we’ve helped clients reduce repayments by over $2,600 a year — without changing their lifestyle or taking on more risk.

This article breaks down practical, proven ways to help you save around $50 each week on your repayments — and why working with a broker enables you to reach your goal of paying off your loan more easily.

1. Lower Your Rate

One of the simplest ways to save $50 a week is by securing a better interest rate. According to findings by PEXA, homeowners who refinanced to a new lender saved an average of $1,908 per year (nearly $37 per week) compared to just $384 annually for those who stayed with their original lender.

The kicker? Existing customers often pay 0.21% more than new customers. That small difference could mean an extra $70 each month on a $526k mortgage.

Refinancing through a trusted broker at AFP Finance & Loans ensures you’re not just accepting the status quo. We compare lenders, negotiate better terms, and help you avoid hidden costs.

Tip: If your rate drops, keep repayments the same to pay off your loan faster and save more in interest.

2. Switch to Weekly or Fortnightly Payments

Most people don’t realise they can make an extra month’s repayment each year just by switching from monthly to fortnightly payments.

If your lender calculates interest daily, this simple change can cut years off your loan and save thousands in interest.

While more frequent payments may not free up the whole $50 immediately, the compound savings are significant over time.

3. Use an Offset Account

Do you have savings sitting in a separate account? You could be missing an opportunity to save $50 each week in interest.

An offset account is a type of bank account linked to your loan. The balance in this account is used to offset the principal (the amount you still owe) — meaning the interest you pay is calculated on a reduced balance.

An offset account allows your money to shrink your loan amount, without locking your savings away. Funds remain fully accessible — but while they sit in the account, they’re actively working to lower the interest you pay (without any extra repayments).

For example, keeping $50,000 in offset on a 6% loan saves about $3,000 a year — or $57 a week — making every dollar work harder for you.

4. Cut Hidden and Ongoing Fees

Fees can quietly erode your savings. Annual package fees can range from $300 to $400, and monthly service fees still exist on many products.

By switching to a low-fee alternative or refinancing smartly, you could reduce your outgoings by $10–$15 a week. We review fee structures and recommend lenders who offer genuine value — not just teaser rates.

Why Work with a Broker?

From refinancing and rate shopping to offset structuring and fee analysis, you will be supported from start to settlement with AFP Finance and Loans. We’ll act on your behalf, comparing options and securing better terms.

With access to over 50 lenders on our accredited panel, AFP Finance & Loans assists clients with residential loans, commercial loans, personal loans, investment finance, and more. We do the heavy lifting so you can focus on what matters to you.

How to Start Saving $50 a Week, Today

You came here to save $50 a week on your loan, and by now you should see it’s easier than it sounds.

Many people overpay without realising. However, with better advice and a few simple adjustments, you can lower costs, improve cash flow, and stay on track financially.

The next step? Get expert eyes on your current agreement. AFP Finance & Loans can help you reduce repayments, avoid fees, and structure your loan repayments to serve your goals.

Book your loan review today to put $50 a week back where it belongs: in your pocket.