Victorian and Northern Territory Budgets – miscellaneous changes

Victorian and Northern Territory Budgets – changes

Jacqueline Wood and Michelle Bennett outline the key stamp duty and land tax changes proposed in the Victorian and Northern Territory Budgets respectively.

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On 2 May 2017, the Victorian and Northern Territory Treasurers presented their State Budgets. We set out below the key stamp duty, and land tax, changes proposed.

Victorian Budget

The key Victorian miscellaneous stamp duty and land tax changes proposed, effective from 1 July 2017, are as follows:

  • Transfers between spouses: the existing stamp duty exemption for transfers of properties between spouses will be removed (but the existing stamp duty exemption applicable to transfers of principal places of residence between spouses, and transfers following a relationship breakdown, will remain).
  • Insurance duty: insurance duty on policies insuring agricultural products against damage from floods, fire and other accidents will be abolished.
  • Motor vehicle taxes: the rate of duty for new passenger vehicle purchases will increase from 3.20 percent to 4.2 percent on the dutiable value of vehicles that do not exceed the luxury car threshold.
  • Land tax: the current biennial property valuations will be undertaken annually and the property valuation process will be centralised within the Valuer-General Victoria.

The following previously announced changes were reiterated:

  • First home buyers: for contracts entered into from 1 July 2017, no stamp duty on purchases up to $600,000. A concession will apply on a sliding scale for purchasers between $600,000 and $750,000 – providing relief of up to $31,000.
  • Off-the-plan: for contracts entered into from 1 July 2017, the off-the-plan concession for new properties will be limited to buyers that qualify for the first home buyer or principal place of residence stamp duty concession.
  • Vacant residential property tax: effective from the 2017 calendar year, properties left unoccupied for 6 months or more in a calendar year will be subject to a tax of 1 percent of the property’s capital improved value.

Northern Territory Budget

The key Northern Territory miscellaneous stamp duty changes proposed, effective from 1 July 2017, are as follows:

  • Transfer duty rates: an increase in the maximum stamp duty rate (from 5.45 percent to 5.95 percent) for conveyances, including landholder duty, for contracts signed on or after 1 July 2017:
    • where the dutiable value is $3m or more but less than $5m, the rate is 5.75 percent of the dutiable value and
    • where the dutiable value is $5m or more, the rate is 5.95 percent of the dutiable value
  • Exemption: the transfer of renewable energy certificates created under the Renewable Energy (Electricity) Act 2000 (Cth) will be exempt.
  • Tax administration: The Taxation Administration Act (NT) will be amended to ensure the Commissioner of Territory Revenue can collect and disclose reportable information to the Commonwealth.
  • First home buyers: For first home buyers there is no stamp duty on the first $500,000, and a discount of up to $23,928 up to the value of $650,000, on established homes.

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