Tax incentives from the 2020-21 Victorian State Budget

Below is a summary of the tax incentives that were included in the 2020-21 Victorian State Budget. The Budget was handed down in Parliament on 24 November 2020.

 

Land transfer duty concessions – regional commercial and industrial properties

  • 50% duty concession for businesses and individuals purchasing commercial and industrial properties in regional Victoria for contracts entered into on or after 1 January 2021

Land transfer duty concession – new residential properties

  • 50% duty concession for new residential properties entered into between 24 November and 30 June 2021 for purchases up to $1 million in contract value

Land transfer duty concession – existing residential properties

  • 25% duty concession for new residential properties entered into between 24 November and 30 June 2021 for purchases up to $1 million in contract value

Land transfer duty relief – bushfire support 

  • 50% concession for businesses and individuals purchasing commercial and industrial properties in State of Disaster Local Government Areas – Alpine, East Gippsland, Mansfield, Towong, Wangaratta and Wellington – and four Alpine Resorts. Backdated to contracts entered into from
    27 January 2020
  • Up to $55,000 relief for homeowners who purchase a replacement home

Land tax relief – build-to-rent projects

  • 50% discount on land tax and full exemption for Absentee Owner Surcharge for build-to-rent projects starting 1 January 2022.  Concessions until 1 January 2040
  • No announcement on concessions for the Foreign Purchaser Additional Duty for build-to-rent projects

Land tax relief – bushfire support

  • Land tax relief for communities affected by bushfire, including exemptions for properties destroyed or substantially damaged, case-by-case relief for affected properties not destroyed or substantially damaged, and concessions and exemptions for properties used to provide free accommodation to people displaced by bushfires

Land tax relief

  • 50% reduction on a property’s 2020 land tax for landlords who provide rent relief to eligible tenants
  • 25% reduction on a property’s 2021 land tax for landlords who provide rent relief to eligible tenants
  • 25% relief for the 2020 land tax for small and medium businesses that operate from owner occupied properties and landlords who are unable to secure a tenant

Payroll tax relief

  • Full-year refunds and waivers on 2019-20 payroll tax for small and medium-sized businesses with annual Victorian payrolls up to $3 million

Payroll tax relief – bushfire support

  • Regional employer rate of 1.2125% payroll tax relief for regional employers in State of Disaster Local Government Areas and four Alpine Resorts backdated to 1 July 2019

New jobs tax credit

  • Businesses with annual Australian group wages less than $10 million will receive a non-refundable New jobs tax credit of 10 cents for every dollar of Victorian wages paid in 2020-21 and 2021-22 above the previous year’s level

Congestion levy waiver

  • 25% waiver of the 2020 levy for car park owners and operators

Motor vehicle duty – bushfire support

  • Motor vehicle duty relief for affected vehicle owners, comprising duty relief of up to $2,100 per replacement vehicle for up to two vehicles

Should you require any further details or to undertake cash flow planning arising from business trading and Government incentives available, please do not hesitate to contact us.