The Victorian Budget 2016-17 was handed down on Wed 27.4.2016. Key proposed revenue measures are as follows:
- Payroll tax tax-free threshold will be increased over 4 years, commencing 1 July 2016. The increase will be phased in as follows: 2016-17 – increase to $575,000; 2017-18 – increase to $600,000; 2018-19 – increase to $625,000; and 2019-20 – increase to $650,000.
- Payroll tax exemption will be introduced for the wages paid or payable by an employer to a displaced apprentice or trainee from 1 July 2016. This will support employers hiring apprentices or trainees wishing to continue and complete their qualifications.
- Land transfer duty surcharge on foreign buyers of residential property will be increased from 3% to 7% on the greater of the purchase price or the market value of the property, in addition to any other stamp duty payable. The surcharge will apply to contracts entered into on or after 1 July 2016 and will be payable at settlement.
- Absentee landowner surcharge will be increased from 0.5% to 1.5% from the 2017 land tax year.
- Land tax exemption for Primary Production Land in Urban Zone will be extended to land owned by certain family superannuation trusts.
- Brown coal royalty is levied on production from the 4 brown coal mines in Victoria. From 1 January 2017, the lignite (brown coal) royalty rate will be increased 3-fold.
The Victorian State Revenue Office (SRO) will also undertake a land tax compliance program targeting the principal place of residence exemption, foreign purchaser additional duty, absentee owner surcharge, undeclared changes in the composition of business partnerships that own land, and land held in undeclared trusts.
[LTN 78, 27/4/16]