The good and bad of Victoria’s $2.7b property tax hit

Over the weekend, Victorian Treasurer Tim Pallas announced $2.7 billion worth of new taxes that will be levied on property owners in a bid to claw back some of $49 billion spent last year to support the state economy through months of lockdowns.

The tax changes are summarised as follows:

• A premium stamp duty will be introduced for property transactions above $2 million.
• Land tax on property investment holdings will increase by 0.25% for taxable land holdings between $1.8 million and $3 million, and 0.30% for taxable land holdings in excess of $3 million.
• A new windfall gains tax will be introduced for properties whose value is boosted by a council rezoning. The tax will apply to properties where the value is boosted by more than $100,000, with a 50% tax on windfalls above $500,000.

The Good