Tax cuts and home ownership support

The Victorian Government is getting on with its plans to slash payroll tax for local businesses and other vital reforms that will make it easier for thousands of Victorians to buy their own home.

Under the reforms, which will be introduced into Parliament in the week starting 19 June 2017, the payroll tax-free threshold will increase to $625,000 as of 1 July 2017, and to $650,000 from 1 July 2018 – a change that is set to save about 38,000 Victorian businesses up to $48 million.

The payroll tax rate will also be reduced by 25 per cent in regional Victoria – from 4.85 per cent to 3.65 per cent. This significant reduction will benefit about 4,000 businesses in our regions and make regional Victoria’s payroll tax rate the lowest in the country.

Farmers won’t miss out either with the removal of insurance duty on agricultural products, making it cheaper for farmers to insure against crop, livestock and equipment damage.

The Bill also includes significant changes to make buying a house more affordable, including the abolition of stamp duty for first time buyers on homes up to $600,000 and cuts to stamp duty on homes valued up to $750,000.

The First Home Owner Grant will be doubled to $20,000 in regional Victoria to make it easier for people to build and stay in their community. The Bill also contains provisions that allow Victorian members of the Australian Defence Force to meet eligibility criteria for the First Home Owner Grant.

Off the plan stamp duty concessions for investment properties will be abolished, along with the introduction of a vacant residential property tax to address the number of properties being left empty across the inner and middle suburbs of Melbourne.

Source: Vic Government