Victorian State Budget 2008

We would like to bring you some of the main points of the Victorian budget announced yesterday by the Treasurer Mr John Lenders.

Some relief has been provided for businesses and property owners. The stamp duty and land tax brackets will be increased by around 10%. We note however that with house prices rising 15 - 25% in 2008, many property owners and buyers will still be paying more land tax and stamp duty than in 2007.

Stamp Duty & First Home Buyer Assistance

New scales of stamp duty have been introduced, with the effect of reducing stamp duty by $3,690 on a $500,000 home purchase. Stamp duty on a $500,000 house will now be $21,970, a rate of 4.39%, down from 5.13%.

There will continue to be a two scale stamp duty system, with the lower rates applying to a principal place of residence. The reductions in stamp duty will apply to transactions from 6th May 2008.

First home buyers in regional areas will also be eligible for a $3,000 first home buyers grant. This is in addition to the $7,000 First Home Owners Grant and the $5000 First Home Bonus for newly constructed homes.

Land Tax

The top land tax rate will be reduced by 10% from 2.5 to 2.25 %, and land tax thresholds have been increased by around 10%. The annual saving on land of $1 million will be $505.

Payroll Tax

The payroll tax rate will be dropped from 5.05% to 4.95% on July 1 2008. This is competitive with other states.

WorkCover

WorkCover premiums have been cut by an average of 5%. The new WorkCover base rate will be 1.387% of payroll.

Additional information is available on the Government's budget website.

Published : 7 May 2008