Stamp Duties, Land Tax and Payroll Tax Changes from 1 July 2019 in Victoria

June 20, 2019

The State Taxation Acts Amendment Act 2019 received Royal Assent yesterday and introduces a number of changes to duties, land tax, payroll tax and land valuations, including those flagged in the 2019-20 Victorian Budget. The amendments, most of which apply from 1 July 2019, include:

Duties Act 2000

  • Foreign purchaser additional duty rate increase from 7 per cent to 8 per cent.
  • Land transfer duty concession for transfers of commercial and industrial properties in regional Victoria.
  • Motor vehicle duty rate increases on passenger vehicles valued above $100,000, with concessions for ‘green’ and ‘primary producer’ passenger vehicles.
  • An exemption from motor vehicle duty for service demonstrator vehicles.
  • Corporate reconstruction duty provisions expanded and the exemption replaced with a concessional rate.

Land Tax Act 2005

  • Principal place of residence land tax exemption for contiguous land limited to properties in regional Victoria (for 2020 land tax year).
  • Absentee owner surcharge rate increase from 1.5 per cent to 2 per cent (for 2020 land tax year).

Payroll Tax Act 2007

  • Exemption for wages paid to employees on maternity leave expanded to all types of parental leave.
  • Wage threshold increases to $700,000 by 2022-23, with increases of $25,000 in both 2021-22 and 2022-23.
  • Regional payroll tax rate to be progressively reduced to 1.2125 per cent from the 2020-21 to 2022-23 financial years. Definition of regional employer amended by removing the business location test.

Valuation of Land Act 1960

  • Simplified methodology for determining the site value of buildings listed on the Victorian Heritage Register.

Non-budget duties measures

Three non-budget duties measures commence today, 19 June 2019, relating to:

  • The definition of a public unit trust scheme (for landholder acquisitions duty purposes).
  • The duty treatment of economic entitlements.
  • The duty treatment of fixtures of significant value.