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.