The Victorian government’s handing down of the 2021 budget has suggested that those who have profited from the COVID-19 pandemic will be punished, with Victorian Treasurer, Mr Tim Pallas, stating that the 2021 budget will “increase taxes on top-end property owners who have benefited from soaring real estate prices.”
Have developers and property investors not already lost out due to COVID-19, which has resulted in loss of office and residential rental income and reduced demand for both inner city living and office space? And Stamp duty changes over the last 5 years, which have already adversely affected the appeal of purchasing ‘off the plan’ and driven overseas investors away?
The 2021 budget changes to the Victorian stamp duty and land tax framework will further impact the Victorian property market in a bid to raise revenue.
Those considered to be ‘top-end property owners’ will incur:
- An increase of land tax rates by 0.25% for property holdings in excess of $1.8 million and 0.30% for property holdings in excess of $3 million (from 1 January 2022);
- Premium stamp duty on property transactions over $2 million (from 1 July 2021); and
- Windfall gains tax of up to 50% for properties that are subject to certain planning rezoning (from 1 July 2022).
(More information can be found at: https://www.sro.vic.gov.au/state-budget-2021-22-announcements)
How does the 2021 budget affect you and your future property plans? We would love to hear from you.