Main outtakes from Victorian State Budget

During the week the Victorian State Government handed down is budget.

It has been pitched as an incentive budget.  Most of the breaks go to property.  In part this is not surprising given its political appeal and that it has a great multiplier effect through the economy.

Property incentives:-

• 50% reduction in Stamp Duty for the acquisition of  newly constructed property costing up to $1,000,000.

• 25% reduction in Stamp Duty for the acquisition of  existing property costing up to $1,000,000.

• This reduction is additional to the first home buyers concession.

• And we remind you that there is also the previously announced 50% Stamp Duty reduction on the purchase of commercial properties.

• Also announced was a 50% Land Tax discount for build to rent developments.

Pay-roll Tax relief:-

• Employers with remuneration under $10,000,000 will receive a 10% credit for the 2020/21 and 2021/22.

• From 2021/22, the monthly payment threshold will increase from $40,000 of pay-roll tax to $100,000.

• There will also be 10% credit (capped at $10,000) for those employers who increase their wages by $100,000 during 2020/21 and/or 2021/22.  

• Unfortunately the threshold in Victoria will remain at $650,000.  All other Victorian states and territories have thresholds of $1,000,000 to  $2,000,000 before they levy Pay-roll Tax.  This seems a significant disincentive to employ in Victoria, particularly for those Murray River border towns.

We welcome any question you may have about the State Budget or any other matter.

At MRS, we will spend today planning for your success.