The 2016-17 Victorian Budget has now been released by the Treasurer and includes the following changes:
- The Foreign Purchaser Additional Duty will increase from 3 per cent to 7 per cent. This will apply to contracts signed on or after 1 July 2016.
- The land tax surcharge on absentee owners will increase from 0.5 per cent to 1.5 per cent from 1 January 2017.
- The payroll tax threshold will progressively rise by $25,000 a year over the next four financial years. The tax-free threshold will increase to $575,000 on 1 July 2016, to $600,000 on 1 July 2017, to $625,000 on 1 July 2018 and $650,000 on 1 July 2019.
- There is a new payroll tax exemption for wages paid or payable to displaced apprentices and trainees from 1 July 2016.
- The land tax exemption for primary production land in an urban zone has been extended to land owned by certain family superannuation trusts from the 2017 land tax year.
More information is available on the State Budget website.