“This budget is about repair, recovery, and making us stronger than before. This is a budget that puts people first.” — Daniel Andrews, Premier of Victoria
VIC budget has recently been announced and just as the Premier has said, the budget focuses on rebuilding the economy and helping people recover.
Here are some important things you have to know about it.
Payroll Tax Measures
There will be an increase in the yearly reporting threshold for businesses that are registered for payroll tax in the state. From $40,000, the threshold will increase to $100,000 on July 1st, 2021.
Did your taxable wage increase this year? Is your payroll less than $10 million? Your business may qualify for a payroll tax credit for the tax year 2020-21. Additionally, if you meet this threshold in 2021 to 2022, you could apply for the same tax credit for the same payroll tax year. This move hopes to encourage business owners to create new jobs, rehire workers, and restore or increase their hours.
Land Transfer Duty Measures
There will be a 50 per cent land transfer duty concession for contracts made on or after January 2021 for industrial and commercial properties in Victoria.
Additionally, all residential purchases in the state with a dutiable value of up to $1 million will have a 50 per cent land transfer waiver. This waiver applies for contracts made between November 25th of this year and before July 1st of 2021. However, you may still have to pay Foreign Purchaser Additional Duty if it applies to you.
Land Tax Measures
Land occupied and owned by not-for-profit clubs will be exempted from the absentee owner surcharge. However, to be eligible for the exemption, the clubs should have been offering cultural, educational, literary, recreational, and social interests to their members. Racecourses do not qualify for this exemption and they maintain their current concessional rate.
From land tax year 2022 until January 2040, eligible build-to-rent developments will receive a 50 per cent land tax discount. Furthermore, they will be exempted from the absentee owner surcharge.
Additional COVID-19 Tax Relief Measures
Those who are building or buying new residential properties in Victoria could be eligible for a $20,000 First Home Owner Grant. To qualify, your contracts must be made by June 30th, 2021. There will also be a full waiver of vacant residential land tax liabilities in 2021 caused by 2020 property vacancies.
Are you confused with all these adjustments and changes? Glance Consultants can help. Our team provides personalised services to meet your needs. We offer individual and business taxation services, bookkeeping, business advisory and more.
Call us at 03 9885 9793 or email email@example.com to learn more about our services and how we can help your business.