Takeaways from Victorian State Budget

Premier Andrews has shown a desire to take no prisoners through the Covid impacted 2020. The latest state budget had a few eyebrow raising items more commonly associated with federal government and the big spending nature of the budget intended to pull Victoria as a state back from the mire of being shutdown through winter.

The highlights include 50% duty concessions for businesses and individuals purchasing commercial and industrial properties in regional Victoria. Applicable contract date being post 1 January 2021.

New residential properties up to $1 million will receive a 50% stamp duty concession from 24 November through to 30 June 2021.

Further stamp duty relief is being offered to bushfire impacted local government areas being 50% concessions again and backdated to 27 January 2020.

For our property landlords, there is 50% land tax relief for landlords who provide rent relief to eligible tenants in 2020 and 25% reduction in land tax for 2021. Owner occupier and vacant buildings will get 25% relief from 2020 land tax.

Employers with payroll up to $3 million have payroll tax waived for 2019-20 with any payroll tax paid being refunded and further reduction in payroll tax back to 2019 if in a bushfire zone. Expanding business will get 10% refund of expansion of payroll in 2021 and 2022 above 2020 levels.

It is a big spending, high incentive budget designed to help the state get back on it's feet. All austerity is out the window in the free for all. It may well be the way to go for the times. It does make some of the doom-saying of PM Tony Abbott and then treasurer Joe Hockey seem like words from another century.

Never has it been more important to focus on what you can control and to live in balance and within your means. If it all seems to complicated, please don't hesitate to give us a call and we'll try and help navigate a path.