Australia: Overview of direct and indirect tax measures in 2024-2025 budget (Victoria)
The Victorian government’s budget 2024-2025, which was delivered on 7 May 2024, includes direct and indirect tax measures.
The Victorian government’s budget 2024-2025, which was delivered on 7 May 2024, includes the following direct and indirect tax measures. There are no significant proposed changes to Victoria’s major property taxation regimes.
Land tax - exemption for social and emergency housing
The government announced a standalone land tax exemption for land that is used to provide social and emergency housing. Additionally, the exemption would apply to charity-owned land where social and emergency housing is under development.
Insurance duty – progressive abolition of business insurance duty
The government would gradually abolish business insurance duty (being public and product liability, professional indemnity, employers’ liability, fire and industrial special risks, and marine and aviation insurance) over a 10-year period, starting on 1 July 2024. The current insurance duty rate of 10% would be progressively reduced by 1% each year with full abolition by 2033.
Payroll tax – annual tax-free threshold increased
The payroll tax thresholds would be increased as follows:
- From 1 July 2024, an increase from $700,000* to $900,000
- From 1 July 2025, a further increase to $1,000,000
*$=Australian dollar