Thousands of Victorian first home buyers and businesses will benefit from stamp duty relief and payroll tax cuts from 1 July, with the passage of the State Taxation Acts Amendment Bill through Victorian Parliament today.
From 1 July, the payroll tax-free threshold will increase to $625,000, and from 1 July 2018 to $650,000. This will save about 38,000 Victorian businesses up to $48 million.
The payroll tax rate will also be slashed by 25 per cent in regional Victoria – from 4.85 per cent to 3.65 per cent – benefiting about 4,000 businesses and making it the lowest payroll tax rate in the country.
This is a massive boost for businesses looking to expand their operations, and yet another huge boost for regional jobs growth, which is already the fastest in the nation.
For first home buyers, stamp duty will be abolished on all homes up to $600,000, with cuts to stamp duty on homes valued up to $750,000.
In a further boost to regional Victoria, the First Home Owner Grant will be doubled to $20,000 in regional Victoria.
This is expected to help up to 6,000 first home buyers purchase a house, boost local construction jobs and development, and encourage more people to call regional Victoria home.
The passing of the Bill also allows Victorian members of the Australian Defence Force to more easily meet eligibility criteria for the First Home Owner Grant.
To further level the playing field for Victorians trying to buy their first home, rather than their second, third or fifth, off-the-plan stamp duty concessions for investment properties will be abolished.
The introduction of the Vacant Residential Property Tax will also address the number of properties being left empty across the inner and middle suburbs of Melbourne.
In a win for the farming community, the new Act will also remove insurance duty on agricultural products, making it cheaper for farmers to insure against crop, livestock and equipment damage.
In just three years this Government has invested over $560 million in tax cuts for business, more than double what the Coalition provided in their entire four years in government.
Quotes attributable to Treasurer Tim Pallas
"These important reforms are a win for thousands of Victorians, allowing businesses to grow and create jobs, while delivering thousands of dollars in stamp duty relief for first home buyers."
"The Andrews Labor Government continues to get on with the job – making our economy stronger and fairer for all Victorians."
Reviewed 19 August 2020