This article is from the Australian Property Journal archive
PROPERTY tax reforms have passed through Victorian Parliament, which will see the state transition commercial and industrial properties away from stamp duty from the beginning of July.
The commercial and industrial property tax reform will progressively abolish stamp duty and replace it with more efficient commercial and industrial property tax.
Treasurer Tim Pallas the reform is “provides a $266 million tax cut in the first four years that will encourage businesses to set up, invest and employ more Victorians”.
The government claims it will add 12,600 jobs and benefit the state’s economy by “up to $50 billion over the next 40 years in cumulative net present value terms”.
From 1st July, stamp duty will be payable one final time on commercial and industrial properties as they are transacted, with no stamp duty applicable to any future sale of those properties.
The commercial and industrial property tax will apply 10 years after the next transaction and will be set at a flat rate of 1% of a property’s unimproved land value per annum.
As part of the transition, eligible purchasers can access a government transition loan for the final stamp duty payment, allowing them to avoid any up-front lump sum payment.
Victorian Chamber of Commerce and Industry CEO, Paul Guerra said, “This is a milestone moment for Victorian business that will encourage and promote growth”.
