The Victorian State Budget was handed down on the 2^nd 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 1^st July 2017.

A $20,000 first home owners grant is available between 1^st 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 1^st 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 1^st 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 1^st 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 1^st July 2017 and to $650,000 from 1^st 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 1^st July 2017. We will keep a close eye on the legislation to see exactly what is defined as regional.