Victorian State Budget Revenue Measures 2020
Victoria concentrates on implementing construction and housing measures to rebuild the economy.
After being postponed because of the impact of COVID-19, the Victorian 2020-21 budget was finally delivered by the Victorian Treasurer the Honourable Tim Pass on 24 November 2020. While the Victorian Treasurer did not follow his New South Wales counterpart in pushing for large scale tax reform, the Victorian state budget did contain a number of new tax measures (including some which were previously announced on 13 September 2020), notably:
- Bringing the 50% stamp duty discount on the purchase of commercial and industrial properties in regional Victoria forward to 1 January 2021;
- Providing transfer duty relief for transactions involving residential property valued up to $1 million entered into between – a 50% discount for new residential properties, and 25% for existing residential properties;
- Halving land tax on eligible build-to-rent developments from 1 January 2022 to 2040. These developments will also be exempt from the Absentee Owner Surcharge; and
- Waiving vacant residential land tax in 2021 on residential property that was vacant for more than six months in 2020 upon lodgement of a vacant residential land tax notification.
Victoria is leaning on the construction and housing market to help rebuild the economy, with a focus on revitalising regional Victoria. The stamp duty discount on commercial and industrial properties in regional Victoria was slated to gradually increase from 20% in 2020 to 50% on 1 July 2023, however following the impacts of the devastating bushfires and the COVID-19 pandemic, the increase to 50% has been brought forward to 1 January 2021. Please note that in order to be eligible for the discount, the use of the land must also meet prescribed “qualifying use” and timing requirements.
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