Melton council has welcomed a new state government reform that will abolish stamp duty on Victorian commercial and industrial properties.
The state government introduced the Commercial and Industrial Property Tax Reform Bill 2024 in late March, which aims to transform commercial property tax by abolishing the upfront cost of stamp duty and replacing it with a more efficient Commercial and Industrial Property Tax.
From July 1, when a property is sold, it will transition into the new system, with stamp duty being payable one final time on that property, and then after ten years the Commercial and Industrial Property Tax applying at a rate of one per cent of the property’s unimproved land value.
To fund their final stamp duty payment, eligible purchasers can access a transition loan provided by the Treasury Corporation of Victoria on commercial terms, freeing up capital for businesses so they can expand or employ more workers.
Owners of residential, primary production, community services, sport, heritage or cultural properties will not be affected by the reforms.
Existing stamp duty concessions for commercial and industrial properties, including the regional concession, will all continue to be available for the final stamp duty payment – and existing land tax exemptions will also apply to the Commercial and Industrial Property Tax.
Melton council Events, Arts and Economic Development manager Heidi Taylor said Melton City Council welcomes any reform that fosters economic growth and attracts investment in the community.
“This reform aligns with our commitment to supporting local businesses and stimulating economic development in the City of Melton,“ she said.
“Council is committed to reviewing and adjusting our strategies to accommodate these changes, ensuring our industrial land planning initiatives remain responsive to the evolving needs of our community and businesses.“
Ahead of the July 1 start date, the government will provide educational support on the reform, including helping industry and taxpayers navigate the transition to the new scheme.
Victorian treasurer Tim Pallas called the abolished stamp duty “one of the least efficient taxes in the Federation“.
“We’ve worked closely with industry to deliver these changes, supporting Victorian businesses to grow and expand faster without the burden of stamp duty,” he said.
