Australia: Transition from stamp duty to property tax on commercial, industrial property (Victoria)
The Victorian government finalised reform that will progressively terminate stamp duty on commercial and industrial property
Commercial, industrial stamp duty for property tax to be terminated in Victoria
The Victorian government finalised reform that will progressively terminate stamp duty on commercial and industrial property and replace it with a commercial and industrial property tax.
- Commercial and industrial properties contracted from 1 July 2024 will transition to the new system, which means stamp duty will be paid one last time, with the commercial and industrial property tax to be payable 10 years after the last stamp duty payment.
- When these properties are next sold, stamp duty will not apply—as long as the property continues to be used for commercial and industrial purposes, and even if the property is sold prior to the commercial and industrial property tax becoming payable.
- The commercial and industrial property tax will be set at a single flat rate of 1% of a property’s unimproved land value—there are no complicated graduated rates—and exemptions that apply to land tax will also apply.
However, the reforms will not apply to properties whose primary purpose is residential, primary production, community services, sport, heritage or cultural, and existing stamp duty concessions for commercial and industrial properties, including the regional concession, will continue to be available.
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