As released in the state budget, property taxes are increasing in Victoria.
After handing down his fifth state budget, treasurer Tim Pallas forecasted $11.3 billion in surpluses over four years. Experts say that the surplus is built too heavily on property taxes.
Due to the softening property market, there is a shortfall in stamp duty of $5.2 billion over the next four years.
To level out this shortfall, the foreign investor duty will increase from 7% to 8%. This increase will come into effect from July 1, 2019. The absentee owner tax will rise from 1.5% to 2% effective from January 1, 2020.
It is estimated that 1700 metropolitan Melbourne property owners will be required to pay land tax on vacant blocks that they own alongside their homes.
Other Major tax increases
As well as the changes to property tax, as of July 2019, there will also be a duty increase on luxury cars worth upward of $100,000. $260 million is expected to be raised due to the duty increase.
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