Victorian State Budget 2017
The Victorian State Budget was handed down on the 2nd May for the 2017/18 financial year.
There are a number of announcements of a tax nature, however these all need to go through parliament before they come into effect.
Victorian State Budget announcements include:
Stamp duty abolished for first home buyers purchasing a property up to $600,000, and concessional rates up to $750,000. This applies from 1st July 2017.
A $20,000 first home owners grant is available between 1st July 2017 and 30 June 2020. The house must be built in regional Victoria up to the value of $750,000.
The current off the plan stamp duty concession will be limited from 1st July 2017 to buyers who will occupy the property as their main residence.
Previously transfers of any Victorian real estate between spouses were exempt from stamp duty. From 1st of July 2017 transfers of commercial and investment properties between spouses will now be subject to duty.
A vacant residential property tax will apply from 1st January 2018 where the property is vacant for more than six months during the year. There are some exemptions to this and it only applies to properties located within a number of Melbourne shires.
The payroll tax threshold will increase from the current $575,000 to $625,000 from 1st July 2017 and to $650,000 from 1st July 2018.
Finally the most interesting change, a reduction in the payroll tax rate from 4.85% to 3.65% for regional employers where at least 85% of the payroll goes to regional employees. This is proposed to apply from 1st July 2017. We will keep a close eye on the legislation to see exactly what is defined as regional.