Victorian Treasurer Tim Pallas announced a number of further tax changes in the state Budget handed down on 20 May 2021 that will impact a wide range of Victorian businesses.

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.