Transfer duty measures
• A waiver of 50% of land transfer duty for new residential property transactions and a 25% waiver for existing properties with dutiable value of up to AUD 1 million for contracts entered into between 25 November 2020 and 30 June 2021. This excludes any Foreign Purchaser Additional Duty.
• Bringing forward a 50% land transfer duty concession for commercial and industrial property transactions in regional Victoria for contracts entered into from 1 January 2021 (rather than 1 July 2023 as announced in the 2019-20 state budget). This will bring the land transfer duty rate down to 2.25% for commercial and industrial property in regional Victoria.
Land tax measures
• A 50% land tax discount for eligible build-to-rent projects, to operate from 1 January 2022 until 1 January 2040. This includes an exemption from the Absentee Owner Surcharge (the foreign land tax surcharge of 2%) over the same period. This measure will bring the land tax payable down from 2.25% (or 4.25% for foreign owners) to 1.125%.
A land tax exemption for land owned and occupied by clubs that provide for the social, cultural, recreational, literary or education interests of their members. This excludes racecourses which remain at the existing concessional rate.
• Land tax relief previously announced as part of Victoria’s COVID-19 support package:
• For commercial and residential landlords that provide eligible tenants with rent relief - up to 50% relief on 2020 land tax (exclusive of any Absentee Owner Surcharge) with the remainder to be deferred until March 2021;
- For small and medium businesses that operate from owner-occupied properties and landlords who are unable to secure a tenant because of public health restrictions – 25% relief on 2020 land tax;
- For eligible residential landlords – 25% relief on 2021 land tax, with outstanding amounts to be deferred until 31 November 2021; and
- A land tax deferral for 2020 land tax liability until 31 March 2021 for taxpayers that have at least one non-residential property and total taxable landholdings below AUD 1 million.