,

Victorian State Budget 2024-25 - Small Changes to State Taxes

,

On 7 May 2024, the Victorian State Government presented the Victorian State Budget for 2024/25.

No substantial tax measures were announced.  There were only new State Tax measures in the Victorian State Budget 2024-25 which are listed below.

The State Taxation Amendment Bill 2024 was also introduced into Victorian State Parliament today and passed the Legislative Assembly.  As the time of this article being published the text of the Bill was not currently available.

New tax measures

New tax exemption for social and emergency housing

  • A new standalone land tax exemption will be introduced from 1 January 2025 for land that is used to provide social and emergency housing.  Additionally, the exemption will also apply to charity owned land where social and emergency housing is under development.

Waste levy to increase

  • The metropolitan industrial and municipal waste levy will increase from 1 July 2025 to $169.79 per tonne from $129.27 per tonne.

Increases to payroll tax-free thresholds

Confirmation of previously announced tax measures

Increase in payroll tax thresholds

The Victorian State Budget 2024-25 also confirmed measures announced in last year’s Victorian State Budget.  Please refer to previous commentary linked below:

  • There will be an increase in the tax-free threshold for payroll tax to $900,000 (from $700,000) from 1 July 2024 and subsequently to $1 million from 1 July 2025.  Refer to our article from last year here on the Victorian State Budget 2023-24.

Progressive abolition of business insurance duty

  • The rate of business insurance duty (currently 10%) on fire and industrial special risks, public and product liability, professional indemnity, employers' liability, and marine and aviation insurance will be reduced by 1 percentage point each year from 1 July 2024.  Refer to our article from last year here on the Victorian State Budget 2023-24.

Stamp duty on commercial and industrial properties replaced with new tax

  • A new Commercial and Industrial Property Tax (CIPT) will progressively replace stamp duty for commercial and industrial properties from 1 July 2024.  The Commercial and Industrial Property Tax Reform Bill 2024 seeking to enact this significant reform has passed the Legislative Assembly and is now being read by the Legislative Council.  Refer to our recent articles here and here on the new CIPT regime.

 Please contact us with any questions on the Victorian State Budget 2024-25 or any other State Tax issues.

Phil Broderick
Principal
T +61 3 9611 0163  l M +61 419 512 801  
E pbroderick@sladen.com.au    

Nicholas Clifton
Principal Lawyer
T +61 3 9611 0154 | M +61 401 150 955
E nclifton@sladen.com.au

Meera Pillai
Associate
T +61 3 9611 0179
E mpillai@sladen.com.au

Nicholas Clifton