Legislation update – State Taxation Amendment Act (2019)
The State Taxation Acts Amendment Act (2019) has introduced other changes to duties, land tax, payroll tax and land valuations which developers should be aware of.
In addition to the changes to the economic entitlement rules, the State Taxation Acts Amendment Act (2019) introduced a number of other changes to duties, land tax, payroll tax and land valuations which developers should be aware of. This includes the following:
- The foreign purchaser additional duty rate increased from 7 percent to 8 percent, meaning the rate of duty for foreign purchasers of residential property will increase to 13.5 percent overall. The new rate applies to contracts entered into on or after 1 July 2019.
- A significant change in the corporate reconstruction duty A full duty exemption is no longer available, but instead replaced by a concessional rate of duty (10 percent of the duty otherwise payable, so a 90 percent concession). The provisions were also changed to widen the eligibility criteria.
- Fixtures of significant value (valued over $2 million) transferred independently of the underlying land are now subject to duty. This applies to arrangements entered into on or after 19 June 2019.
- A duty concession for transfers of commercial and industrial properties in regional Victoria will be progressively introduced (up to a 50 percent concession by 1 July 2023).
- The absentee owner surcharge rate will increase from 1.5 percent to 2 percent for the 2020 land tax year.
- The principal place of residence land tax exemption for contiguous land on a separate title will be limited to properties in regional Victoria from the 2020 land tax year.
- The Victorian payroll tax-free wage threshold will be progressively increased from $650,000 to $700,000 by 1 July 2022.
- The payroll tax rate for regional employers will be progressively reduced to 1.2125 percent by 1 July 2022, and the definition of a regional employer has been amended.
- The payroll tax exemption for wages paid to employees on maternity leave has been expanded to all types of parental leave.
- A simplified methodology has been introduced for determining the site value of buildings listed on the Victorian Heritage Register.
Homebuyers, Housing Affordability and the Federal Election – What Developers need to know
By Nick Sparks & Lachlan Peavey
We summarise the incentives and concessions on offer for developers from both major parties ahead of the Election.
The importance of marketing – developer liable for misleading and deceptive conduct
We outline the impacts of a case where a developer had deceived purchasers by marketing an off-the-plan development...
Probuild and beyond: Insolvency issues for construction projects
By Sam Kingston
This article gives a high level summary of the issues that commonly arise and some relevant considerations.
Planning reform in Victoria – What is the current state of play?
By Guest Contributor, Eleni Roussos | Director, Urbis
Eleni Roussos, Director at Urbis, looks at the current state of play and what planning reforms will survive.