The Victorian State Budget was delivered on Thursday 20 May 2021 with a long term plan to help Victorians recover. This Budget invests in the support people need and the Victorian workers needed to deliver it.

We will bring you updates as proposals are legislated or updated. To receive these first sign up to our newsletter at www.afsbendigo.com.au/e-news-signup

The key points impacting individuals and business are:

Measure	Expected start date (if legislated)
Mental health and wellbeing levy (payroll tax surcharge). A payroll tax surcharge on wages paid in Victoria by businesses with national payrolls over $10 million a year. A rate of 0.5% will apply for businesses with national payrolls above $10 million, and businesses with national payrolls above $100 million will pay an additional 0.5%.	1 January 2022
Bringing forward of the increase in the payroll tax threshold from $650,000 to $700,000.	1 July 2021
Bringing forward of the reduction in the regional employer payroll tax rate from 2.02% to 1.2125%.	1 July 2021
New premium land transfer duty (stamp duty) rate for property transactions with a value above $2 million, increasing stamp duty payable to $110,000 plus 6.5% of the dutiable value in excess of $2 million.	Applies to contracts entered into on or after 1 July 2021
Temporary land transfer duty (stamp duty) concessions for new residential property within the City of Melbourne local government area with a dutiable value up to $1 million.  – A 50% concession will be available for new residential properties. – A full exemption will be available for new residential properties that have remained unsold for 12 months or more since completion of construction.	– Concession applies to contracts entered into on or after 1 July 2021 and on or before 30 June 2022 – Exemption applies to contracts entered into on or after 21 May 2021 and on or before 30 June 2022
Temporary increase in the eligibility threshold for the off-the-plan duty concession to $1 million for all home buyers.	Applies to contracts entered into on or after 1 July 2021 and on or before 30 June 2023
The land tax rates for high value landholdings will increase: – for taxable landholdings exceeding $1.8 million — the land tax rate will rise by 0.25 percentage points, and – for taxable landholdings exceeding $3 million — the land tax rate will rise by 0.30 percentage points.	2022 land tax year
The general land tax threshold will increase from $250,000 to $300,000. (The land tax threshold for land held on trust remains unchanged at $25,000.)	2022 land tax year
The vacant residential land tax exemption for new developments will be extended to apply for up to two tax years.	2022 land tax year
New Distillery Door Grant scheme for Victorian distilleries.	2021-22 and 2022-23 financial years

The overall spending summary is as follows:

• $3.8 billion to transform our mental health system, building the system from the ground up
• $3.7 billion to meet demand for hospital services, including more emergency department staff, extra highly specialised therapies, and support for new wards as they open
• $3.2 billion for public transport services and infrastructure, including $986 million to build 25 new X’Trapolis 2.0 trains and supporting infrastructure for our metropolitan network, and 613 million to support the reliability of V/Line train services and maintain the regional rail network
• $1.6 billion for school infrastructure, including upgrades at 52 schools, building 13 new schools and additional stages at three further schools and expanding six more across the state
• $1.3 billion to continue our state’s public health response to the pandemic
• $1.2 billion to support children and families, including an expansion of the child protection workforce and out-of-home care placements and help for vulnerable Victorian families
• $788 million to reduce the impact of bushfires on Victorian communities, the economy and the environment
• $759 million in funding for more paramedics, more triage care and support staff for Ambulance Victoria, as well as targeted funding to improve flow in our busy emergency departments and open new beds across the state as part of our $3.7 billion support for increased hospital demand
• $716 million for school programs and support for our teaching workforce, including $148 million to establish the Victorian Academy of Teaching and Leadership, dedicated to the professional learning and development of Victorian teachers
• $556 million to build and expand 10 community hospitals
• $386 million for a new Road Safety Strategy to develop new safety technologies, deliver infrastructure upgrades, and other improvements helping to keep Victorians safe
• $354 million to support victim survivors and address family violence
• $288 million to boost our creative sector – supporting jobs, developing homegrown talent and promoting our people and content to the world
• $265 million to plan, upgrade and maintain suburban, rural and regional roads, ensuring a safe and reliable journey for local communities
• $252 million to provide housing support, including targeted initiatives to address homelessness
• $250 million to protect and preserve our natural environment, including support for volunteers and local community organisations to help conserve our native species and their habitats
• $167 million to continue the roll out of universal three-year-old kindergarten, covering the whole state in 2022
• $160 million to support Victoria’s tourism sector to drive visitation and employment
• $86 million to establish the Victorian Skills Authority to champion and strengthen the vocational education and training sector
• $70 million to establish public in-vitro fertilisation services to help people who want to become parents achieve their dreams
• $50 million to support establishing Victoria’s capability to manufacture mRNA vaccines

To read more about all the support measures included in the Budget, click here to view the Budget Papers.

Please contact our team if you have any questions in relation to the Budget and how it affects you. Call 03 5443 0344 or via afs@afsbendigo.com.au