NSW Budget Changes To Benefit Asset-Backed Securitisations

As part of the budget package released today by the New South Wales Treasurer, the State Revenue Legislation Amendment Bill 2010 was introduced.

Amongst a number of other changes, the Bill contains a new exemption for asset-backed securities and related transactions. Assuming the Bill passes both Houses of Parliament this exemption will become effective on 1 July 2010.

Clients familiar with the equivalent exemption in the Queensland Duties Act will recognise that the new definition of "financial asset" is based on the Queensland definition of that term. A financial asset therefore includes a loan, a credit card account, a hire purchase agreement, a lease, a floorplan agreement and, reaching beyond Queensland's definition, an insurance contract or other financial service/product contract.