As part of its “COVID Debt Repayment Plan”, the Victorian Government announced a range of land tax increases which will apply for a 10-year period starting from 1 January 2024. These increases apply to land held from midnight on 31 December 2023.
The changes do not impact land already exempt from land tax such as family homes and primary production land.
The changes include:
In addition, the government also announced:
Lastly, the State Government has recently passed the “State Taxation Acts and Other Acts Amendment Bill 2023”. Whilst not part of the Government’s “COVID Debt Repayment Plan”, there will likely be significant Land Tax and other Tax changes from this bill. Specifically, from 1 January 2024, Vendors will be prohibited from apportioning Land Tax, and other taxes, under a contract of sale.
This Bill also poses other major changes, including expansion of the “Vacant Residential Land Tax”.
We understand that changes in tax laws can be challenging to navigate. Our team is here to assist you in understanding these changes and planning accordingly. Please feel free to reach out to your Smith Feutrill contact for any clarifications or to discuss your specific circumstances.
