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The State Budget 2019-20 includes a number of announcements related to legislation administered by the State Revenue Office.

These measures have to be approved by the Victorian Parliament before they can start. You should only rely on the exact detail of the changes once the legislation is passed, which is likely to be in June 2019.

State Budget 2019-20 announcements

Measure Expected start date
Foreign purchaser additional duty rate to increase from 7 per cent to 8 per cent. Applies to contracts entered into on or after 1 July 2019
Land transfer duty concession introduced for transfers of commercial and industrial properties in regional Victoria.  Applies to contracts entered into on or after 1 July 2019
Motor vehicle duty rate to increase on passenger vehicles valued above $100,000 with concessions for ‘green’ vehicles and ‘primary producer’ vehicles. 1 July 2019
An exemption from motor vehicle duty for service demonstrator vehicles. 1 July 2019
The corporate reconstruction duty provisions to be expanded and the exemption replaced with a concessional rate.  1 July 2019
The principal place of residence land tax exemption for contiguous land to be limited to properties in regional Victoria. 2020 land tax year
The absentee owner surcharge rate to increase from 1.5 per cent to 2 per cent. 2020 land tax year
The payroll tax exemption for wages paid to employees on maternity leave to be expanded to all types of parental leave. 1 July 2019
Payroll tax threshold to be increased to $700,000 by 2022-23, with increases of $25,000 in both the 2021-22 and 2022-23 financial years. 1 July 2021 and 1 July 2022
The regional payroll tax rate paid by eligible businesses to be progressively reduced to 1.2125 per cent over the 2020-21, 2021-22 and 2022-23 financial years and the definition of ’regional employer‘ to be amended to simplify the eligibility criteria for this rate by removing the business location test. 1 July 2019, 1 July 2020, 1 July 2021 and 1 July 2022
The Valuation of Land Act 1960 to be amended to simplify the methodology for determining the site value of buildings listed on the Victorian Heritage Register. Day after Royal Assent