Our experts explore the key takeaways from the 2025/26 Victorian State Budget and answer what’s on the table for businesses, industries and communities across Victoria- uncovering opportunities of resilience and growth for your financial landscape.

Relevant observations of the Victorian Budget 2025-26 include the following:

• While the Budget focuses on providing cost of living relief to Victorians, it does little to tackle the State’s debt which is forecast to reach a record $194 billion within four years. Notably, the Budget’s operating surplus of $600 million is $1 billion less than was forecast in December. While Victoria will spend $6.5 billion in new initiatives in 2025-26 only half of that will be offset through savings. This will result in a net increase of $3.1 billion in new spending compared to last year’s budget. 
• While no new taxes have been introduced in the Budget, taxation revenue is forecast to be $41.7 billion in 2025-26 and grow by an average of 4.7% per year over the forward estimates. 
• Despite the ongoing fierce debate around the fire services levy and emergency services and volunteers fund levy (ESVFL) (which will come into effect from 1 July 2025), the Budget forecasts that the ESVFL will generate $1.6 billion in 2025-26. This indicates that it is unlikely that the Government will remove or amend the ESVFL, which would create a substantial shortfall in the Victorian Government’s revenue that would cause its thin operating surplus to go into deficit.

What does the State Budget mean for you?

Our Fast Facts provide an overview of the budget insights and highlight potential opportunities for you.

Take a look at what the Victorian State Budget mean for you in 2025 below:

Contributors

William Zhang

Eric Lay

The post VIC State Budget 2025/26 appeared first on SW Accountants & Advisors.

Key takeaways

• Focus on hospitals and schools.
• Health spending is 31% of the 2024-25 budget’s operating expenses.
• Infrastructure spending program has an added $4.9bn for targeted new investments in critical areas.
• The already announced Commercial and Industrial Property Tax (CIPT) regime is on the horizon.
• Delay of Airport Rail link.
• Payroll Tax threshold to be lifted to “make things easier” for small business.

What does the State Budget mean for you?

Property & infrastructure

Payroll Tax

Contributors

William Zhang

Blake Rogers

The post VIC State Budget 2024/25 appeared first on SW Accountants & Advisors.

Key takeaways

• Larger businesses and landlords will have to pay additional taxes to help the Government repay the COVID debt
• The Government continues to invest in education and healthcare as this remains a key focus
• Certain infrastructure projects have been paused such as the Melbourne Airport Link. However, the Government continues to invest in road upgrades and railway networks.

What does the State Budget mean for you?

Tax reform & changes

Property & infrastructure

Contributors

Ned Galloway

Blake Rogers

Eric Lay

The post VIC State Budget 2023/24 appeared first on SW Accountants & Advisors.

Revenue measures announced as part of the 2022–23 Queensland Budget, include:

• a mental health levy on payroll taxes above $10m
• extension of payroll tax deduction for small and medium Queensland businesses with the deduction being extended from the current ceiling of $6.5m in annual Australian taxable wages up to $10.4m
• 50% payroll tax rebate for apprentices and trainees will be extended for a further 12 months to 30 June 2023, and
• foreign acquisition duty relief for foreign buyers who are retirement visa holders when purchasing their principal place of residence on or after 1 January 2023.

Mental health levy

A mental health levy will be introduced which will apply to payroll tax liabilities arising on or after 1 January 2023. This will be applied to large employers, or groups of employers, with annual Australian taxable wages over $10m, including an additional levy applied to taxable wages over $100m, providing funding for mental health services.

The mental health levy will be applied as follows:

• a 0.25% levy on the annual Australian taxable wages of employers, or groups of employers above $10m
• an additional 0.5% levy on the annual Australian taxable wages of employers, or groups of employers, above $100m.

The levy will only apply to the portion of the wages above the respective taxable wage amounts (i.e. on a marginal basis).

Payroll tax relief for small to medium employers

Payroll tax relief will be provided for small and medium businesses, by increasing the payroll tax deductions available to employers, or groups of employers, with annual Australian taxable wages of between $1.3m and $10.4m. These changes are proposed to apply to payroll tax liabilities arising on or after 1 January 2023.

Racing levy

A 5% racing levy will be applied to the betting tax rate and bonus or free bets will be incorporated into the calculation of betting tax for liabilities arising on or after 1 December 2022.

Progressive coal royalty rates

3 additional progressive coal royalty rates will apply. The new tiers will apply on that part of the average price per tonne of the coal sold, disposed of or used on or after 1 July 2022 as follows:

• 20% for prices exceeding $175 AUD,
• 30% for prices exceeding $225 AUD, and
• 40% for prices exceeding $300 AUD.

How can SW help?

Please reach out to one of our experts below for assistance navigating the implications and opportunities this Budget presents for you, your business and your industry.

Contacts

Jeremy Wicht

Vincent Shi

The post QLD State Budget Overview 2022/23 appeared first on SW Accountants & Advisors.

Key takeaways

• Although there are no key tax measures introduced, direct property taxes will continue to be the source of over 50% of new revenue for the Victorian Government due to increased transaction volume and rising land values (although this is expected to be tampered by forecasted interest rate rises).
• A new Victorian Future Fund will be established to manage the fiscal impact of COVID 19. It will initially be funded from the VicRoads Modernisation joint venture and is expected to have a balance of around $10bn. Investment returns from the Fund is to be quarantined and returned to the Fund to help offset the current debt and return the Budget to surplus by 2025-2026.
• There is a clear focus in this Budget to repair the health system. Included in the Budget is more than $12bn of health-related expenditure including the training and hiring of additional healthcare workers and paramedic staff, funding for Ambulance Victoria to meet growing demand for services and investment to cut surgery waiting lists.
• The two-year Sick Pay Guarantee pilot program will receive $246m in funding to assist provision of a payment of up to five days of sick or carer’s pay at the national minimum wage for insecure work (casual employees).
• $250m provided for a one off $250 Power Saving Bonus to all Victorian households using the Victorian Energy Compare website to locate the cheapest electricity deal. The scheme will run from 1 July 2022 to 30 June 2023.
• A commitment of $111m to support Victoria’s tourism and major events.
• The Victorian Government has allocated $1.8bn to the school building project and plans to continue upgrading schools until it achieves its intended target of 100 new schooling facilities by 2026. The program includes upgrades to 65 schools including 36 special schools, building 13 new schools, additional stages at four more schools, and expanding capacity at two schools to meet enrolment demand.
• The Victorian Government also plans to invest $5bn in early three-year-old childhood education by increasing universal educational access for disadvantaged families as well as providing support to individuals from diverse backgrounds and $131m to assist students from rural areas to access four-year-old early childhood services.

For full overview of the infrastructure measures see our breakdown here.

Victorian Industry Fund to support Victorian Businesses

The Government has introduced a $120m fund to support the advancement of domestic manufacturing and other high priority sectors. Some of the initiatives to be supported by this Fund include:

• $40m to provide grants to support rapidly growing businesses
• $40m of targeted financial incentives to attract investment into Victorian businesses
• $20m for an equity investment pilot fund to attract highly innovative companies particularly in areas such as medical technology
• $7m low-carbon manufacturing grant program to help Victorian manufacturers to compete globally in the renewable energy space
• $4.5m for 300 digital jobs for manufacturing internships to help train Victorian workers in this industry. 

Significant Tax Measures

No significant new tax measures were announced in the 2022/23 Budget although there were minor amendments in relation to:

• Equalisation of gambling tax rates for electronic gaming machine operators

• Exemption from motor vehicle duty for wheelchair accessible commercial passenger vehicles that provide unbooked services.

However, as noted above, the State Taxes are to be a major source of revenue for the Victorian Government. The table below shows the annual revenue expected from State Taxes over the next 4 years.

Opportunities

The opportunity for businesses may come from the expected economic growth although this is not anticipated to be significant. Business sectors such as Medtech, pharmaceuticals and manufacturing should benefit from the increase in funding.

Did the VIC Budget measure up to expectations?

The Budget fell short of providing the required assistance to boost businesses which are facing significant uncertainties.

The Government’s commitment to repairing Victoria’s health system in needed and welcomed. However, the Government has not sought to increase property taxes to decrease the State’s debt and is instead relying on solid economic growth to repair the budget.

Please reach out to one of our experts below for assistance navigating the implications and opportunities this Budget presents for you, your business and your industry.

Contacts

Abi Chellapen

Daren McDonald

Stephen O’Flynn

The post VIC State Budget 2022/23 appeared first on SW Accountants & Advisors.

Significant measures

New infrastructure spending:

• $1.6bn for construction and development of new schools and school upgrades
• $1.6bn for construction and development of new hospitals, health facilities and related upgrades
• $2.6bn investment over 4 years in the Commonwealth Games 2026 which includes funding for building and upgrading sporting venues and related supporting infrastructure
• $991m investment in improving Victoria’s roads and rail
• $1bn to fund low interest loans for community housing agencies to deliver social and affordable housing.

Key continuing initiatives from prior Budget announcements:

• Victoria’s Big Build: an average $21.3bn a year over the budget and forward estimates, reflecting the continuation of major productivity-enhancing projects such as the North East Link, the Metro Tunnel, the West Gate Tunnel, the Melbourne Airport Rail, the Geelong Fast Rail, the Suburban Rail Loop and the removal of 85 level crossings by 2025
• $6bn Big Housing Build package – continued investment in new social and affordable homes
• Stamp duty concessions and exemptions for residential property transactions, particularly homeowners
• Victoria’s HomeBuyer Fund of $500m, expanding the HomesVic Shared Equity Initiative by contributing equity to the purchase price for eligible first home buyers
• Continued concessions to eligible BTR developments – a 50% land tax concession for up to 30 years and a full exemption from Absentee Owner Surcharge over the same period.

For all key takeaways of the Victorian State Budget 2022/23 see here.

Opportunities

• Continued focus on infrastructure spending; the 2022-23 Budget provides $22.2bn in output spending and invests $6.7bn in new and improved assets. Investment in hospitals, rail and roads, social and affordable homes will continue to provide opportunities for property sector professionals and contractors
• Wage growth and increased household income will continue to drive demand for residential housing
• Continued stamp duty concessions, coupled with the HomeBuyer Fund funding is also likely to support the demand for residential housing. These initiatives may also mitigate any settlement risk for developer
• Ongoing Build-To-Rent concessions will continue supporting new entrants into that market
• Constraints on construction labour and materials may increase demand and investment in new property technologies aimed at delivering efficiencies in output
• There are no new taxes introduced impacting property purchasers and owners.

Did the VIC Budget measure up to expectations?

There are no new tax relief measures introduced for Victorian property purchasers, developers nor landowners. The constraints on residential and non-residential construction output, such as ongoing shortages of construction materials and labour shortages are also acknowledged but not addressed by any direct Budget initiatives.

The increases in costs of construction will be driven by projected wage growth of minimum 2.75% in the construction industry. This coupled with increase in cost of construction materials, also due to shortages, will continue to increase the price of newly constructed property.

While there are tax measures aimed at providing relief to homeowners (potentially neutralised by today’s interest rate hike) there is little relief provided in the Budget for the rest of the property sector participants such as property investors and developers.

Please reach out to one of our experts below for assistance navigating the implications and opportunities this Budget presents for you, your business and your industry.

Contacts

Daren McDonald
Director, Chair of Property &
Infrastructure Industry Group
SW

Matt Birrell
Director, Tax
SW

Sejla Kadric
Director, Private Business Client Advisory
SW

The post VIC State Budget 2022/23 – Property & infrastructure appeared first on SW Accountants & Advisors.

Key takeaways

• $14.8bn infrastructure spending in 2020-21 – largest annual commitment in over a decade
• Infrastructure focus on roads and rail with key links in South East QLD, Rockhampton and Cairns
• $1bn commitment to onshore manufacturing, refurbishment and maintenance of trains in Maryborough and Rockhampton, including 20 new trains
• Support for key industries of tourism, agriculture and mining
• Implementation of a savings and debt plan to deliver $3bn in savings over four years by the Government focussing on core tasks only
• $7bn Unite & Recover Package to safeguard health and protect jobs, including reducing business costs through payroll tax reductions and other tax relief measures, and accelerating projects
• Support for small business through concessional job support loans, Small Business Adaption Grants, Business Investment Funds and electricity bill relief.
• Gross State Product forecast to grow by just ¼% – unchanged from COVID-19 forecast economic impact.

Impacts to your business

• Queensland small business support to maintain jobs
• Commitments to upgrades to road and rail infrastructure
• Payroll tax relief as part of COVID-19 response.

Opportunities for growth and stability

• Continuation of popular small business grants programs
• QLD Government commitment to procure 25% of spend from small to medium business
• Continued commitment from the Government to ensure payment of small and medium business creditors on time
• #GoodToGo advertising campaign to stimulate domestic tourism including support for new Indigenous Tourism businesses

The QLD 2020/21 State Budget also has a range of initiatives to develop and support regional areas with a strong focus on Agribusiness.

Key takeaways

• $300m in grants to help flood-affected farmers rebuild
• $6.3bn in assistance and concessional loans to support industry through times of drought
• Introducing a mandatory Dairy Industry Code of Conduct between farmers and large processors, allowing ACCC to raise awareness of and monitor and enforce compliance with code of conduct
• $81.6m has been allocated over three years to reduce irrigation water charges for the state’s farmers and fruit and vegetable growing businesses
• Investment to enhance Agricultural export with a focus on supporting emerging export markets
• Investing in and further developing our Gold Standard in Agribusiness
• Farm biodiversity certification scheme and ongoing stewardship and biodiversity practices of the sector
• Further investment to support the delivery of the Beef Australia 2021 expo held in Rockhampton (Rocky Beef Expo)
• Focus on National Agricultural Workforce Strategy
• Focus on National Leadership for Agricultural Innovation.

Impacts to your business

• Australian businesses can access grant funding to help develop their export activities
• The A-HKFTA will ensure a tariff rate of zero on all Australian exports to Hong Kong
• Tariffs on imports from Hong Kong into Australia will be eliminated.

Opportunities for growth and stability

• Water infrastructure and security focus underpins agribusiness sector growth via increased attractiveness as a investment destination of choice
• Investment in regional hub infrastructure e.g. airports, rail and roads, will aid agribusiness export opportunities
• Investment in maintaining and enhancing Australia’s globally recognised gold standards in relation to agriculture stewardship and biodiversity practices
• Workforce development programs and increased Innovation Investment will drive greater workforce productivity and production efficiencies.

Did the Budget deliver what you ordered?

It has been an extraordinary year of upheaval as the nation grapples with the effects of COVID-19 and we recognise that everyone has been impacted in different ways. Reach out to our experts below for assistance navigating the implications and opportunities this Budget  presents for you, your business and your industry.

Get in touch

The post QLD 2020/21 State Budget appeared first on SW Accountants & Advisors.

• $300m to address regional telecommunication blackspots
• $2bn Breakthrough Victoria Fund and the Agricultural College Modernisation Program
• $30m for the Agriculture Energy Investment Fund
• Funding to support Victoria’s agricultural exporters
• Funding to assess regional Victoria’s agriculture industry skill needs.

Impact to your business

• Funding which improves connectivity is welcomed and will help attract more people to rural areas increasing the talent pool available to agribusinesses
• The significant investment in research and skills will provide the next generation of farmers with the required skills to grow the agriculture sector
• Export funding will assist the state to take advantage of market opportunities in developed and emerging markets post-COVID, including Asia and Indo-Pacific countries.

Opportunities for growth and stability

• Access new markets and overcome trade barriers
• Improved supply chain and adoption of new technologies will increase efficiency and deliver cost savings
• Rail and road upgrades will assist in delivering produce to market quicker as well as reduce logistic costs

Contacts

The post VIC 2020/21 State Budget – Agribusiness appeared first on SW Accountants & Advisors.

Property

• $6bn Big Housing Build package
  • 12,200 new social and affordable homes
• $111m to implement planning reforms and reduce red tape to fast-track new projects
• Stamp duty waiver of 50% on new residential property transactions of up to $1m (worth up to $27,500)
• Stamp duty waiver of 25% on existing residential property transactions of up to $1m (worth up to $13,750)
• Bring forward Stamp duty concession of 50% on commercial and industrial property transactions in regional Victoria – now for contracts entered from 1 Jan 2021 rather than 1 Jan 2023
• Build to Rent projects Land tax discounts of 50% until 2040 and exemption from Absentee Owner Surcharge
• Vacant Residential Land tax waiver for all 2021 liabilities that arise due to property vacancies in 2020
• New Jobs Tax Credit for eligible businesses of 10c for every $1 of Victorian taxable wages above the previous year
• Victoria’s HomeBuyer Fund of $500m, expanding the HomesVic Shared Equity Initiative, by contributing equity to the purchase price for eligible first home buyers.

Road and rail projects

• Kickstarting Suburban Rail Loop through a $2.2 billion investment
• $2 billion towards delivering Geelong Fast Rail (matching the Commonwealth contribution)
• $1.5 billion towards the purchase of 100 Next Generation Trams
• State-wide road upgrades.

Energy projects

$1.6bn investment driving cheaper and cleaner energy sources including $682m to develop Victoria’s Renewable Energy Zones

• Investment in rooftop solar panels through additional solar rebates and investment in the rollout of a fast-charging network for electric vehicles across major highways and key tourist destinations
• Energy efficiency funding for social housing.

Community projects

• $1.9 billion in school upgrades including one new school
• Various hospital upgrades and development (4,100 jobs)
• $1.4billion Arts Precinct transformation (5,000 jobs).

Additional support

• Education and training funding including $631m for the TAFE system including $33m for ‘Big Build training pathway’
• $156m Extension of Regional Jobs and Infrastructure Fund
• $75m funding for the Growing Suburbs Fund
• $65m for agriculture strategy development including better infrastructure.

Impacts to your business

Property development

• Build to rent returns will improve with significant ongoing land tax savings and investment in social and affordable housing
• Investment in 12,200 new social and affordable homes should deliver new opportunities with increased construction activity in that space
• Demand for residential housing valued up to $1m should increase with stamp duty savings and shared-equity contributions available for eligible purchasers
• Settlement risk may be mitigated where eligible purchasers access government support
• Planning reform should cut red tape and fast-track approvals
• These concessions coupled with the recent Federal budget announcements will drive demand for new residential dwellings, construction activity and ancillary commercial opportunities.

Infrastructure

• Investment in hospitals, rail and roads will provide opportunities for contractors and project managers.  The suburban rail loop investment alone is expected to support initially up to 8000 jobs.
• Investment in regional centres through road, rail and energy projects will continue to change demographics and offer employment opportunities
• Further investment in solar and clean energy initiatives for 35,000 affordable homes

Did the VIC Budget deliver what you ordered?

• Social and affordable housing, infrastructure projects and cleaner energy were prioritised in this Budget
• The Budget attempts to encourage both supply and demand for the property sector with tax savings for some developers, purchasers and landowners
• Developers of sufficient scale should have an increased appetite for build to rent projects with land tax savings and funding for social and affordable housing
• However some industry participants may not find much relief in this Budget
• No further relief for Landlords has been included in the Budget
• While other states are proposing to move away from stamp duty, Victoria has not followed suit in this Budget

Get in touch

It has been an extraordinary year of upheaval as Victoria grapples with the effects of COVID-19 and we recognise that the property and infrastructure industry has been heavily impacted. Reach out to our experts for assistance navigating the implications and opportunities this Budget presents for you, your business and your industry.

Contacts

The post VIC 2020/21 State Budget – Property & infrastructure appeared first on SW Accountants & Advisors.

Key Takeaways

• Projected deficit of $23.3bn this year. Net debt will reach $86.7bn in 2021 increasing to $154.8bn by 30 June 2024
• The government has set the goal of creating an additional 200,000 jobs by 2022 and 400,000 by 2025
• A commitment of $250 million to subsidise the wages of at least 10,000 workers, a minimum of $150 million of this will go towards employing women
• Secure work pilot scheme to provide up to five days of sick and carers pay for casual workers in priority industries
• The Victorian government will contribute to the purchase price of a property in exchange for proportionate ownership in a property to assist home buyers who don’t have a 20% deposit
• $2bn has been allocated to the Breakthrough Victoria Fund to support Research and Development across key industries
• 15,000 solar rebates for small business and an additional 42,000 solar rebates for households.
• Infrastructure spending of $78.4bn over the next four years
• $5.6bn for schools and early childhood education
• $9bn is being spent on the Victorian healthcare system. $2bn will be spent on the building of new hospitals and the upgrade of existing hospitals
• $510 million to restart Victoria’s visitor economy including $28 million on providing up to 120,000 travel vouchers to drive tourism back to regional Victoria.

Significant Tax Measures

The measures below are in addition to the measures previously announced as part of the Victorian government’s response to COVID-19.

Duty

• For contracts entered into between 25 November and 30 June 2021, 50% waiver for new properties and 25% waiver for existing properties of land transfer duty for residential properties purchased up to $1m
• 50% stamp duty concession for commercial and industrial properties located in regional Victoria brought forward to 1 January 2021.

Build to Rent / Land Tax savings

• To help establish a build to rent sector, a 50% land tax discount will be provided from 1 January 2022 to 2040 for eligible new developments. Eligible developments are also exempt from the Absentee Owner Surcharge over the same period.

Payroll tax measures

• New Job Tax Credit – Employers with Australian wages of less than $10m will receive a non-refundable payroll tax credit equal to 10% of additional Victorian wages paid in 2021 and 2022 compared to the prior payroll tax year
• Payroll tax deferral for 2020-21 year for entities with payrolls up to $10m
• Increase in threshold for paying payroll tax on an annual basis from $40,000 to $100,000 in order to boost cash flow for small business.

First Home Owner Grant

• First Home Owner Grants of up to $20,000 for buying or building new homes in regional Victoria extended to 30 June 2021.

Opportunities for growth and stability 

• We can assist businesses who are looking to access the $2bn Breakthrough Victoria Fund for Research and Development
• Small and medium businesses will be rewarded for increasing the size of their Victorian workforce, promoting growth in Victoria
• The build to rent measures will increase the housing supply in Victoria and provide many jobs and business opportunities in the construction supply chain.

Did the VIC Budget deliver what you ordered?

It has been an extraordinary year of upheaval as the nation and nowhere more so than Victoria has been impacted by the effects of COVID-19 and we recognise that everyone has been impacted in different ways. Reach out to one of our experts below for assistance navigating the implications and opportunities this Budget presents for you, your business and your industry.

Contacts

The post VIC 2020/21 State Budget appeared first on SW Accountants & Advisors.