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Ashfords 2021-2022 Victorian State Budget Review

The Victorian State Budget was handed down on 20 May 2021.

 

Victoria has recorded a deficit of $17.4 billion in the 2020-21 financial year and is forecast to remain in a shortfall until at least 2025. This is not as high as was forecast last year, with a $23.3 billion deficit initially predicted. The reduced deficit means Victoria has rebounded quicker than expected from the COVID-19 pandemic.

 

Here is our summary of what may impact you…

 

Payroll Tax

A surcharge rate of 0.5% will apply for businesses with national payrolls above $10 million

A surcharge rate of 1% will apply for businesses with national payrolls above $100 million

The increase in the payroll tax threshold to $700,000 will be brought forward to 1 July 2021.

The reduction in the regional employer payroll tax rate to 1.2125% will be brought forward to 1 July 2021.

Businesses with an annual payroll tax liability of less than $100,000 can elect to report and pay payroll tax annually instead of monthly. This is expected to commence from 1 July 2021.

 

Land Transfer Duty (Stamp Duty)

 

Land Tax Changes

 

Other Taxes

 

A new windfall gains tax of up to 50% to be applied to planning decisions to rezone land from 1 July 2022. The total value uplift from a rezoning decision will be taxed at 50% for windfalls above $500,000, with the tax phasing in from $100,000. This is expected to commence from 1 July 2022.

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