Commercial and industrial property owners will soon no longer pay stamp duty after the Andrews government announced Tuesday’s budget would abolish the lump-sum payment in favour of an annual property tax in coming years.
The new annual tax will be set at a flat 1 per cent of a commercial property’s unimproved land value.
A transition period from the middle of 2024 will give first buyers of a commercial property the option to pay either stamp duty upfront or the same amount over a decade.Once a property moves to an annual tax, stamp duty can never again apply. Property owners who bought before the 2024-25 financial year will remain under the current stamp duty system.
Treasurer Tim Pallas said the government had listened to business and industry calls for the shift to a broad-based tax. “These landmark changes will enable businesses to be more dynamic and agile, and to grow and employ more workers,” he said in a statement.Victorian Chamber of Commerce and Industry chief executive Paul Guerra welcomed the change.
“This is exactly the type of progressive tax reform that is required to free up stamp duty charges, which will accelerate building upgrades, stimulate investment in commercial property and free up more capital,” he said.The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Victorian dodgy landlord register lists just 16 names after more than two yearsAdvocates say blacklist meant to address power imbalance is not working and renters remain unaware of rights or fearful of retaliation
Read more »
Victorian man dies after collision with power poleA Victorian man died on Saturday afternoon after a fatal crash in Shepparton East, about 190km north-east of Melbourne.
Read more »
Readers reply: why do Americans use the term ‘Victorian’?The long-running series in which readers answer other readers’ questions on subjects ranging from trivial flights of fancy to profound scientific and philosophical concepts
Read more »
Victorian budget to include new taxes and $1b surplus within three yearsVictorian Treasurer Tim Pallas is expected to deliver an operating surplus of $1 billion in 2025-26 – $100 million higher than forecast in the pre-election budget – that will grow to $1.2 billion the year after.
Read more »
The great Victorian budget mystery: who will repay its massive ‘Covid debt’?For once the Andrews government has largely avoided major announcements ahead of Tuesday’s state budget
Read more »