State Budget 2020 Announcements
Victorian State Budget Key Announcements
The 2020-21 Victorian State Budget was handed down this week. The main tax related announcements are:
New Jobs Tax Credit
Businesses with annual wages less than $10 million will receive a payroll tax credit of 10 cents for every dollar of taxable Victorian wages paid in 2020-21 and 2021-22 above the previous year’s wages. This is a non-refundable offset so at most it will offset the payroll tax liability for the year, it will not result in a refund.
Payroll tax threshold increase
From 1 July 2021, the threshold for paying payroll tax annually will be increased from $40,000 to $100,000. This means that business with an annual payroll tax liability of less than $100,000 can choose to pay on an annual basis rather than a monthly basis.
Land transfer duty waiver
A land transfer duty waiver of 50% will apply for purchases of new residential properties (and 25% for existing residential properties) for contracts entered into between 25 November 2020 and 30 June 2021. This relief applies to properties with a dutiable value of up to $1 million and is over and above existing concessions.
Commercial and industrial land transfer duty concession
The regional Victoria 50% commercial and industrial land transfer duty concession will be brought forward to apply to contracts entered into from 1 January 2021 (rather than 1 July 2023 as per the 2019-20 Budget).
Build-to-rent sector in Victoria
Under Victoria’s Big Housing Build program, a 50% land tax discount will be available for eligible new build-to-rent
Navigating your way through the announcements and how they apply to you can be complicated.
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