The Victorian Budget – latest news about Stamp Duty and Land Tax changes

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The Victorian Government has delivered itself a massive 13 percent pay rise in the 2021-22 State Budget off the back of increased property taxes and new taxes on families, jobs and investment.

“With wage growth stagnant and unemployment at 6.1 percent, surely Victorians have to ask if this is the right time to hike taxes and introduce new ones” suggests Danni Hunter, Executive Director, Victoria of the Property Council.

According to the Property, Council Victorians pay over 50 percent of the Government’s tax revenue through property, and with massive hikes on land tax, stamp duty, and investment in new projects, these taxes are anything but fair.

Here’s their take on the situation…

This is a budget with a heavy tax bill for Victorian families, jobs and investment in our state.

Besides the very welcome agenda on mental health, targeted stimulus for off-the-plan apartments and funding for CBD revitalisation, it is a budget that is light on policy reform, and heavy on tax hikes that could put at risk the economic recovery Victorians are working so hard to secure.

Stamp duty will go up 13 per cent and land tax will go up 15 per cent this year alone. Financial Advisory Corporate Tax Planning Or Optim

With NSW and other states working toward rationally reducing their reliance on property taxes, the Victorian Government has demonstrated that it has a very real addiction to this revenue.

We must return to budget surplus, but over-taxing one part of the economy, an industry that employs one in four Victorian workers, is not a fair way to do it.

Budget papers show that property tax revenue was already growing off the back of growing house prices.

The new stamp duty slug will hit 50 percent of homes in 120 suburbs by 2030.

Victorian families will pay more to buy a house that suits their needs.

Transfer Duty

Source: Property Council.

 

Victorian businesses will pay more in the form of increased land tax and costs on businesses through their office space or warehouses.

This in turn will flow through to the cost of products and services for every Victorian.

Land Tax

Source: Property Council.

With governments around the country focused squarely on stimulus and increasing investment because they know it is good for jobs and their communities, the Victorian Government has put on the noise-canceling headphones and is intent on shutting up shop.

We of course welcome the admirable agenda to rebuild our mental health system from the ground up.

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About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


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