The 2019-20 State Budget was delivered on Monday 27 May 2019. Below are some of the key announcements made. These measures have to be approved by the Victorian Parliament before they can commence, which is likely to be in June 2019.
The payroll tax-free threshold will be increased over the coming years, from $650,000 to $700,000 by 2022-23
Passenger vehicles worth between $100,000 and $150,000 will be charged a duty of $14 per $200 of value and vehicles valued above $150,000 will be charged a duty of $18 for each $200 of value
The tax paid by foreign property investors will increase from 7% to 8% from 1 July 2019
The tax paid by absentee landowners will be increased from 1.5% to 2% from the 2020 land tax year
Adjoining blocks of land from the main residence on a separate title and without a residence will no longer be eligible for the principal place of residence land tax exemption. This will apply from the 2020 land tax year
Corporate reconstruction exemption to be expanded and the exemption replaced with a concessional rate. From 1 July 2019, the value of this concession will be reduced and a duty rate of 10% of the duty otherwise payable will be applied
From 1 July 2019, a land transfer duty concession will be provided to commercial and industrial property transactions in regional Victoria. A 10% concession will be provided from 1 July 2019 scaling to 50% by 1 July 2023.