30 May 2024

The Allan Labor Government's groundbreaking tax reform for Victorian businesses has successfully passed Parliament, marking a pivotal shift for commercial and industrial properties away from stamp duty, effective July 1, 2024. Through the Commercial and industrial property tax reform, stamp duty will eventually be abolished, making way for a more efficient tax system tailored to support Victorian businesses in their setup, land and building investments, and employment endeavors.

These reforms are projected to deliver substantial benefits, including a $266 million tax cut within the first four years, facilitating the creation of 12,600 jobs and potentially boosting Victoria's economy by up to $50 billion over the next 40 years in cumulative net present value terms. Under the new system, the commercial and industrial property tax will come into effect ten years after the next transaction, levied at a flat rate of 1 per cent of a property's unimproved land value annually.

To aid businesses and taxpayers in navigating this transition, the Labour government will offer educational support. For additional information and resources, interested parties can visit dtf.vic.gov.au/funds-programs-and-policies. Tim Pallas, emphasizing the significance of these reforms, underscores the government's commitment to fostering business growth through the transformational overhaul of Victoria's property tax system.

Acknowledging the collaborative efforts between the Victorian Chamber of Commerce and Industry and the State Government in achieving this significant tax reform, Pallas anticipates a surge in economic activity resulting from the change, heralding it as a milestone moment for Victorian businesses poised to spur growth and prosperity.