Victorian State Budget 2021-22: Payroll Tax
Whilst the Victorian Government has announced several positive and welcome reforms, it has also introduced an additional tax for medium and large employers.
Whilst the Victorian Government has announced several positive and welcome reforms, it has also introduced an additional tax for medium and large employers.
The 2021-22 Victorian Budget included various significant transfer (stamp) duty changes, comprising duty concessions for purchases of properties within the City of Melbourne local government area, a widening of the off-the-plan duty concession for home buyers, as well as the pre-announced increase in the rate of duty for purchases of properties worth over $2 million.
For the first time in more than ten years, the Victorian Government has announced an increase in land tax rates. Properties with an unimproved value of $1.8 million or more will be stung with a significant amount of additional land tax, with the hike expected to raise more than $1.53 billion in revenue over the forward estimates period.
The Federal Budget 2021-22 was built against the backdrop of an ongoing global pandemic and the faster than expected economic recovery to date. The resilience and resurgence of much of Australia’s economy has been supported by a range
of temporary Government initiatives designed to help businesses and individuals navigate the unprecedented upheaval in the Australian and global economies.
The Government announced a range of expenditure measures to stimulate growth in key sectors, while also addressing priority policy areas, including the country’s digital capabilities and funding to support women.
The Government will maintain changes to reduce personal income tax. This measure is designed to continue to stimulate the economy by increasing the disposable income available to individuals.
The Government has provided further support for capital investment by businesses and assistance with cash flows by extending the “temporary full expensing” measure as well as the loss carry-back offset for an additional income year. Important changes to the minimum threshold for the superannuation guarantee charge (SGC) have also been announced.
The Government has committed to the introduction of the Corporate Collective Investment Vehicles regime (CCIVs) regime, with a revised start date. There has also been a number of minor technical changes announced to the Taxation of Financial Arrangement (TOFA) rules relating to portfolio hedging and foreign currency.
The Government has announced a significant change to Australia’s individual tax residency rules, as well as some other cross-border proposals of note.
Superannuation changes announced in the Budget are beneficial in nature and mainly target increasing flexibility and contribution opportunities for individuals over age 60.