On 24 November 2020, the Victorian Government handed down its State Budget. The focus of the budget was on the promotion of investment into the economy both by the State Government and the private sector.
In addition to the relief measures previously announced by the Victorian Government during the COVID-19 pandemic, the tax measures announced in the State Budget include:
- Bringing forward the commencement date (i.e. to 1 January 2021) of a 50% discount on stamp duty for purchases of commercial and industrial properties in regional Victoria.
- Providing a 50% stamp duty discount on the purchase of new residential property costing up to $1 million until 1 July 2021.
- Providing a 25% stamp duty discount on the purchase of second-hand residential property costing up to $1 million until 1 July 2021.
- Increasing the threshold for taxpayers to be able to pay their payroll tax annually from $40,000 to $100,000.
- The provision of a 10% payroll tax credit for those businesses with a payroll of less than $10 million per annum that re-hire staff and employ new workers. The payroll tax credit will apply on the extent to which wages paid in the 2021 and 2022 financial years exceed their prior year wages amount.
- The provision of a 50% land tax discount through to 2040 on eligible new developments focussed on the build-to-rent sector.
Please do not hesitate to get in touch with us via your Banks Group representative, (03) 9810 0700 or firstname.lastname@example.org if you have any further questions.