The coronvirus pandemic continues to have an impact on the health of Victorians and the econmy of the State. In recognition the Victorian Government continues to provide a number of state tax and duty relief measures to assist Victorians with the economic impact of the pandemic. This article outlines the 2021 coronovirus relief measures announced and / or in place at 8 February 2021 in Victoria.
1. STAMP DUTY CONCESSIONS AVAILABLE FOR RESIDENTIAL ACQUISITIONS
To entice buyers back in to the property market the Victorian Government will waive up to half the stamp duty on purchases of residential property or land with a dutiable value up to $1 million. The waivers apply as follows:
new residential properties -a 50% land transfer duty waiver of the duty otherwise payable applies.
existing residential properties - a 25% land transfer duty waiver of the duty otherwise payable applies.
vacant residential land - a 25% land transfer duty waiver of the duty otherwise payable applies.
Importantly the contact for the purchase of the property or land must be entered into between 25 November 2020 and 30 June 2021. For more details see here.
2. LAND TAX REDUCTIONS, DEFERRALS AND WAIVERS AVAILABLE
The Victorian Government has two measures in place for the 2021 land tax year.
The first measure is a land tax reduction of 25% and deferral is available for landlords of residential and commercial properties that provide eligible rent relief from 1 January to 28 March 2021. These landlords can defer paying the remainder of their 2021 land tax assessment (and any 2020 land tax previously deferred under the 2020 relief measures) until 30 November 2021.
In relation to this measure it is noted:
Applications are open for residential landlords and landlords of properties with multiple tenancies. Applications for such landlords of commercial properties and owner-occupiers are not yet open.
Landlords of commercial properties seeking this reduction or deferral should be mindful that the relief must be consistent with the Commercial Tenancy Relief Scheme. Additionally, tenants must meet requirements based on turnover and decline of such turnover. Further details can be found here.
This measure does not apply to a absentee owner surcharge.
The second measure is a waiver of vacant residential land tax for 2021. The vacant residential land tax will be waived in 2021 for properties that were vacant for more than 6 months in 2020.
It is noted that a number of 2020 measures continue to apply or applications may continue to be open. For example applications for 2020 land tax relief remains open but closes on 31 March 2021. For further details on the 2020 land tax measures see here.
3. PAYROLL TAX DEFERRALS AND CREDITS FOR EMPLOYERS
A number of payroll tax reliefs were provided by the Victorian Government in 2020, including a waiver of payroll tax for employers with annual Victorian taxable wages up to $3 million. A number of additional measures were announced in late 2020 and as part of the state’s 2020-21 Budget which apply to the 2021 year. These include:
A deferral of 2020-21 payroll tax liabilities for employers (individual, not grouped) with Victorian payrolls up to $10 million. Such payments can be paid in four quarterly instalments in the 2021-2022 financial year, the first being due on 7 September 2021.
The New Jobs Tax Credit provides a credit of 10 cents per extra dollar spent on wages compared with the previous financial year. The credit applies to businesses with Australian grouped wages of less than $10 million and is designed to encourage businesses to rehire staff, increase hours and create new jobs. The program will apply for two years (2020-21 and 2021-22 financial years). The credit will be applied against your paryoll tax liabilities at the end of the financial year. For more details see here.
It is noted that the payroll exemption which commenced in 2020 to apply to additional payments made to bridge the gap between an employee’s normal wage and the $1500 per fortnight required to qualify for JobKeeper payments continues to apply.
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There are a suite of state tax reliefs available depending on the type of taxpayer you are. For further details or to determine the application of these measures to your circumstances contact one of our specialists in the Sladen Legal State Tax Team:
Laura Spencer
Senior Associate
M +61 436 436 718 | T +61 3 9611 0110
E lspencer@sladen.com.au
Phil Broderick
Principal
M +61 419 512 801 | T +61 3 9611 0163
E: pbroderick@sladen.com.au
Lucy Liang
Lawyer
T +61 9611 0131
E lliang@sladen.com.au
