This article outlines the key changes, with commentary on practical implications, compliance requirements, and planning considerations for clients and advisors alike.

The Bill and accompanying Explanatory Memorandum provide more information on the changes discussed below.

Extension to Off-the-Plan (OTP) Stamp Duty Concession

The current OTP concession has been extended again for eligible contracts entered into on or before 21 October 2026. The concession reduces the stamp duty payable by deducting construction costs from the sale price when determining the duty liability. The concession can result in substantial stamp duty saving for the buyer.

The extension provides continued relief for buyers (home owners and investors) of newly built apartments, townhouses and units and will reduce upfront costs to make property more affordable and support housing supply growth with the encouragement of pre-sales.

As the extension is again temporary, rather than the introduction of a permanent concession, developers and advisers should encourage eligible purchases to act before the deadline of 21 October 2026.

For further information on this exemption, please refer to our previous update: New temporary off-the-plan duty concession – SW Accountants & Advisors

Land Tax Exemption for Family Violence Victim-Survivors

Individuals who flee their principal place of residence (PPR) due to family violence may now:

• Receive a land tax exemption for up to 6 years, and
• Requalify for first home buyer benefits under the Duties Act if they purchase a new home.

This reform helps prevent victim-survivors from losing critical concessions during an already traumatic life event. It recognises the economic vulnerability caused by displacement and aims to provide a financial safety net.

Advisors should ensure clients are aware of this exemption and support them in assembling evidence (e.g. intervention orders, police reports) to substantiate claims. It’s a rare intersection of social policy and taxation.

Build-to-Rent (BTR) Concessions – Expanded compliance Obligations

Victoria’s BTR regime continues to evolve, with tightened rules to further uphold the intended purpose of the concession. The key changes introduced by the Bill include:

• Genuine 3-Year Lease Offer: BTR developers must offer tenants a lease of at least 3 years. If a shorter lease is accepted, a declaration signed by both parties must confirm the longer lease was offered.
• 12-Month Lease Minimum: Short-term leases (<12 months) are prohibited from 1 January 2026, except where they follow on from a long-term lease (e.g. as an extension).
• Commissioner’s Discretion: If a property is temporarily uninhabitable (e.g. due to renovation, disaster), the Commissioner may disregard this period when assessing eligibility for BTR benefits.

These provisions are designed to enforce the long-term housing intent of the BTR regime and avoid exploitation via serviced apartments or short-term rentals. Requiring signed declarations ensures the 3-year offer is not a token gesture.

The prohibition on short leases supports stable tenancies but may reduce flexibility in tenant arrangements. BTR operators must ensure their internal processes capture offers, declarations, and tenancy records. Failure to document properly could jeopardise eligibility for land tax concessions.

The Commissioner’s discretion on uninhabitable periods provides welcome relief, offering flexibility in genuine cases of vacancy due to repairs or emergencies. However, expect the SRO to require detailed evidence for such claims.

CIPT Reforms

The Commercial and Industrial Property Tax (CIPT) regime introduced in 2024 has been updated, with reforms focused on clarity and integrity. The key changes include:

• Provisional Use Assessment: Where land lacks an Australian Valuation Property Classification Code (AVPCC), the Commissioner may provisionally determine whether it qualifies for CIPT based on actual use.
• Valuations for Non-Rateable Land: The Commissioner may now request a formal valuation from the Valuer-General for non-rateable or non-leviable land.
• Subdivision Clawback: If a parent lot enters CIPT as a partial transaction, and is subdivided within 3 years, duty will apply to purchases of child lots.

The ability to determine qualifying use without relying on AVPCCs removes administrative bottlenecks, particularly for new developments or rezoned land. Requesting VGV valuations ensures the regime can’t be sidestepped by holding land outside typical local government frameworks (e.g. charities or Crown leases). These stakeholders should re-evaluate holdings for CIPT exposure.

Finally, the subdivision clawback is a targeted anti-avoidance measure. Developers can no longer rely on staging subdivisions to defer or avoid duty once land is partially transitioned into CIPT. It underscores the need for comprehensive structuring advice from project inception.

Trustee Notification Requirements Simplified

Trustees are now only required to notify the SRO of land transactions where:

• they cease to hold land as trustee and acquire it personally, or
• they change the trust under which they hold the same land.

This significantly reduces red tape for routine changes, such as retiring/resigning trustees or administrative changes within a trust and isa change that aligns with practical trustee conduct. However, proper documentation still remains essential when changing the trust deed or transferring beneficial ownership, as these changes may still trigger duty or other tax consequences.

Penalty Tax for Recklessness

An amendment to the Taxation Administration Act 1997 (Vic) introduces a 50% penalty tax for recklessness by a taxpayer or a person acting on their behalf in respect of the taxpayer’s obligations. These penalties will be issued in respect of tax default and notification defaults.

The new penalty level signals that the State Revenue Office will adopt a firmer stance on non-compliance that stems from recklessness. This therefore underscores the importance of:

• Diligent Compliance: Ensuring that all tax obligations are met with due care an attention.
• Professional Advice: Seeking guidance from qualified tax professionals when uncertain about tax positions or obligations.
• Documentation: Maintaining thorough records of decisions and advice received to demonstrate the basis for tax positions taken.

How SW can help

At SW, our property and stamp duty experts can provide analysis and advice around the changes introduced in the Bill and identify the impacts that they can have for you.

Please contact our SW advisors for more information on how the changes may impact you.

Key contacts

William Zhang – Associate Director, Tax
Blake Trad – Consultant, Tax

The post Victoria’s State Tax Reform 2025: What Property Owners, Developers & Advisors Need to Know appeared first on SW Accountants & Advisors.

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.

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.

With experience helping a range of clients operating in the public arena and an understanding of the unique operating environments in which government bodies and entities operate, we offer sound, cost-effective advice across a range of areas including risk, governance, audit and compliance. 

The SW team members have provided services to a significant number of Government and Local Government agencies, including, Victorian water authorities, higher education institutions, health, regulatory and infrastructure.

The post Government & regulators appeared first on SW Accountants & Advisors.