The treasurer introduced 30 per cent minimum trust tax legislation to federal parliament on Wednesday, facing pushback from the coalition, business and a looming Senate review.
Dr Chalmers offered businesses reliant on trust arrangements a work-around, but could not quell uncertainty surrounding the possibility businesses would incur costly state stamp duties.
But NSW Treasurer Daniel Mookhey vowed a re-elected Labor government would ensure businesses using the Excluded Election Trust arrangement would not incur relevant state taxes.
Mr Mookhey said he worked with the federal treasurer ahead of the move, designed to give business as much certainty as possible, "as early as possible".
Business NSW thanked the state government in a statement while taking aim at Labor.
"Business owners have enough on their plate without worrying whether opting into a new federal tax arrangement could trigger a significant stamp duty bill," chief executive Daniel Hunter said.
"Our latest business conditions survey found 35 per cent of businesses want reducing taxes and charges to be the top priority for the next NSW government."
The move is one of several policy interventions ahead of the NSW state election in March next year.
Mr Mookhey pledged to reduce state spending to counter inflation while addressing a think tank - a link Dr Chalmers remains pressured to make in Canberra.
''In my first economic statement to parliament in June 2023, I said the key to bringing inflation under control is to bring our own spending under control," Mr Mookhey said.
Inflation has an outsized impact on NSW families, who on average hold larger mortgages than other Australians, according to Mr Mookhey.
He said he was aiming to reduce the state's debt by more than $10 billion.
"Fiscal responsibility isn't easy, it's not always popular, but it has never been more essential for the prosperity of our great state," he said.
NSW also targeted a gas-fired peaking plant under a state initiative to provide insurance to long-term, renewable energy infrastructure.
The government excludes gas from its renewable Capacity Investment Scheme.
NSW and federal Labor remain at odds over the state's GST carve-up, and Mr Minns' cabinet has been eager to appeal to the state's small businesses.
One Nation leader Mike Newman has flashed his private industry credentials during public outings and Liberal leader Kellie Sloane attempted to square-up the government with promises to reduce payroll tax over the week.
10°C