SLASHING STAMP DUTY IN HALF TO BOOST REGIONAL BUSINESSES
Monday, 1 July 2019
The Andrews Labor Government is making it even easier for businesses to establish and expand in Eastern Victoria Region by cutting stamp duty by 50 per cent.
From today, commercial and industrial properties in regional Victoria will receive a duty concession of 10 per cent, which will increase by 10 percentage points each year reaching 50 per cent by 1 July 2023.
It not only presents business opportunities for new operators but also minimises costs for businesses wishing to expand or move their operations across regional Victoria, including Eastern Victoria Region.
It is anticipated 2,400 transactions will take advantage of the concession each year, saving an average $17,500 by mid-2023.
The Labor Government is doing more to encourage businesses to relocate to Victoria’s regional areas, while supporting existing regional businesses to expand their operations and hire more staff.
Further reductions to the regional payroll tax rate are also planned, providing a massive boost for rural and regional businesses.
The regional payroll tax rate will reduce 0.4 percentage points each year from 2020-21 until 2022-23, at which point it will be a quarter of the metropolitan rate.
It will fall to 1.21 per cent by 2022-23, meaning regional businesses in Victoria will continue to have the lowest payroll tax rate in the country.
Around 3,500 regional businesses are expected to benefit from the payroll tax relief.
From 1 July, businesses will no longer have to have their business address registered in regional Victoria to take advantage of the reduced regional rate, meaning more businesses will qualify.
Instead, businesses will be eligible if 85 per cent of wages are paid in the regions.
Since November 2014, more than 60,000 new jobs have been created in regional Victoria with the unemployment rate in the three months to May 2019 the lowest on record at 4.1 per cent.
Quotes attributable to Acting Treasurer Robin Scott
“This will help thousands of regional businesses expand their operations, reach new markets and create jobs.”
“It complements our suite of measures in regional Victoria that have eased regulatory burden, encouraged growth and boosted local employment.”
Quotes attributable to Member for Eastern Victoria Region, Harriet Shing
“We’re continuing to support jobs and growth in regional Victoria with a range of measures designed to ease the cost of living and improve opportunities and economic growth.’
“Not only are we making further cuts to the regional payroll tax rate and expanding the eligibility criteria, we’re now cutting stamp duty on commercial property – this will help drive regional investment.”