State Taxation Acts and Other Acts Amendment Bill 2023

State taxation acts and other acts
The State Taxation Acts and Other Acts Amendment Bill 2023 was introduced into the Parliament of Victoria on 3 October 2023 and proposes a number of changes to Victoria’s taxation laws, including:
  • expanding vacant residential land tax to all vacant residential land in Victoria from the 2025 tax year, subject to applicable exemptions
  • expanding the definition of vacant residential land to include unimproved residential land that has been unimproved for 5 years or more in established areas of metropolitan Melbourne from the 2026 tax year
  • prohibiting land tax apportionment between a vendor and purchaser under a contract of sale of land from January 2024
  • prohibiting windfall gains tax from being passed onto a purchaser under a contract or option agreement entered into once a windfall gains tax liability has been assessed from January 2024
  • changing the frequency of some reporting requirements, including foreign purchaser additional duty exemption reporting and absentee owner surcharge exemption reporting (from 6 months to 12 months).
The "Explanatory Memorandum" of the Amendment Bill 2023 is as follows

GENERAL

This Bill amends the Duties Act 2000 to:

  • change the frequency of foreign purchaser additional duty exemption reporting to Parliament from every 6 months to every 12 months; and
  • allow the corporate reconstruction and consolidation concession and exemption to apply to certain sub-sale arrangements; and
  • clarify the operation of the pensioner and concession card duty reduction, the public landholder concession and the corporate reconstruction and consolidation concession.

The Bill amends the First Home Owner Grant and Home Buyer Schemes Act 2000 to align with the amendments to the Duties Act 2000 in relation to the pensioner and concession card duty reduction.

The Bill amends the Local Government Act 1989 to align the meaning of capital improved value of land under that Act with the meaning of that phrase under the Valuation of Land Act 1960.

The Bill amends the Property Law Act 1958 in relation to the apportionment of taxes under a contract of sale of land.

The Bill amends the Sale of Land Act 1962 to:

  • prohibit the apportionment of land tax between a vendor and purchaser under a contract of sale of land; and
  • prohibit the apportionment of an existing windfall gains tax liability between a vendor and purchaser under a contract of sale of land or option to enter into a contract of sale of land.

The Bill amends the Treasury Corporation of Victoria Act 1992 to correct a reference to the Transport Integration Act 2010.

The Bill amends the Valuation of Land Act 1960 to provide that the value of fixtures is included in the capital improved value of land.

The Bill amends the Windfall Gains Tax Act 2021 to:

  • broaden the windfall gains tax exemption for rezoning errors; and
  • clarify the definition of excluded rezoning as it applies to land in the contribution area within the meaning of section 201RC of the Planning and Environment Act 1987; and
  • clarify the operation of the windfall gains tax waiver of for charitable land.

The Bill amends the Land Tax Act 2005 to:

  • apply vacant residential land tax to all vacant residential land in Victoria on and after 1 January 2025; and
  • extend the definition of vacant residential land tax to include certain unimproved land in metropolitan Melbourne effective from 1 January 2026;
  • alter the imposition of a single COVID-19 debt temporary surcharge to aggregated land which is otherwise assessed on a single holding basis; and
  • change the frequency of absentee owner surcharge exemption reporting to Parliament from every 6 months to every 12 months; and
  • adjust the formula for calculating the amount of BTR special land tax payable by owners of land.


Some related Links are as follows and we will release a more detailed article if this bill becomes law: