Changes to state taxes - June 2014
The Building a Better Victoria (State Tax and Other Legislation Amendment) Act 2014 received Royal Assent on 17 June 2014 and introduces changes to:
- Duties Act 2000
- First Home Owner Grant Act 2000
- Land Tax Act 2005
- Payroll Tax Act 2007
- Planning and Environment Act 1987
- Road Safety Act 1986
- Taxation Administration Act 1997
The major changes include:
- Abolishing life insurance duty from 1 July 2014.
- Clarifying when life insurance policy riders attached to life insurance policies are subject to insurance duty.
- Increasing the rate of motor vehicle duty on the application for registration or transfer of registration of a motor vehicle by 0.2 per cent from 1 July 2014.
- Allowing the SRO to disclose certain information obtained in the administration of the First Home Owner Grant Act 2000 to the Commonwealth Department of Human Services (for Child Support and Centrelink purposes), Foreign Investment Review Board and Independent Broad-based Anti-corruption Commission.
- Aligning the greater Melbourne boundary with the urban growth boundary from the 2015 land tax year. Land that falls within the new boundary and also in an urban zone may be subject to more stringent primary production exemption criteria. However, owners of any such land will not be adversely affected by this unless a trigger event has occurred on or after 7 May 2014.
- Removing the requirement for a purchaser of land to lodge a notice of acquisition (in paper form) with the State Revenue Office (SRO) when using the Electronic Lodgement Network to process a land transfer.
- Enabling the SRO to use valuations prepared by councils for the fire services property levy for the purposes of assessing land tax.
- Reducing the payroll tax rate from 4.90 per cent to 4.85 per cent from 1 July 2014.
- Imposing a new metropolitan planning levy from 1 July 2015. The levy will only apply to planning permit applications in metropolitan Melbourne where the estimated cost of development exceeds $1 million. This threshold will be indexed by CPI each year from 1 July 2016. The amount of the levy is $1.30 for every $1000 of the estimated cost of the development.
- Increasing the fee payable for registration or renewal of registration of a car, motorcycle, trike or truck that has a gross vehicle mass of 4.5 tonnes or less by $25 from 1 July 2014. The registration or renewal fee payable in the 2014-15 financial year will be $270.40.
Changes to state taxes – May 2014
The major changes include:
- Expansion of inner Melbourne's congestion levy boundary to include a new category 2 levy area.
- From 1 January 2015, the leviable parking spaces in the new category 2 levy area will be levied at the concessional rate of $950 per leviable parking space. However, from 2016 onwards, the levy amount will be indexed annually by the consumer price index.
- Car park owners and operators in the new category 2 levy area will be allowed to pay the 2015 congestion levy based on an estimate of leviable car parking spaces in 2015. The SRO will make a final adjustment of the levy payable early in 2016 based on the actual number of leviable parking spaces in the 2015 levy year.
- New congestion levy exemptions for parking spaces provided in Yarra Park Reserve and at Melbourne Zoo from the 2015 levy year and parking spaces used by the general public on a casual basis at Melbourne and Olympic Park from the 2014 levy year.
- Amendments to the fire services property levy land use classification for certain properties.
- Provision for the fire services property levy to be adjusted retrospectively where the allocation of the wrong Australian Valuation Property Classification Code has resulted in the land use classification being incorrectly applied.