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:
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 email@example.com