Victorian Stamp Duty vs Land Tax

News is spreading that as a part of the Budget announced last week, the Victorian Government will be replacing stamp duty on commercial and industrial property transactions with an annual property tax. The change will be implemented from 1 July 2024. The intent is to reduce barriers to property transaction, allowing assets to trade more freely.

The proposed tax will be 1% of the unimproved (i.e. undeveloped) land value, whereas the current system is calculated off the improved (i.e. developed) value, with the top rate being 6.5%. As such, the net outcome for landowners will vary from site to site, however the move appears to have the potential to discourage land banking and to free up cash for other purposes early after a property acquisition. The Victorian Government estimates that this change will result in a “cumulative increase in the size of the Victorian economy as a result of this reform is up to $50 billion in Net Present Value terms”.

There will be a transition period where the first purchasers of a property will be able to choose between paying stamp duty upfront at the time of purchase, or paying in equal instalments over ten years, moving to the 1% p.a. tax after the ten year transition period. The instalment approach would be structured similarly to a loan, with government interest being charged.


Looking for more information?

Curious about Property Trusts?

Learn more

This article is issued by Trilogy Funds Management Limited ABN 59 080 383 679 AFSL 261425 (Trilogy Funds) as responsible entity for the management investment schemes mentioned in this article. Application for investment can only be made on the application form accompanying the relevant Product Disclosure Statement (PDS) and by considering the Target Market Determination (TMD) available at The PDS contain full details of the terms and conditions of investment and should be read in full, particularly the risk section prior to lodging any application or making a further investment, together with the TMD. All investments, including those with Trilogy Funds, involve risk which can lead to no or lower than expected returns, or a loss of part or all of your capital. Trilogy Funds is licensed to provide only general financial product advice about its products and therefore recommends you seek personal advice on the suitability of this investment to your objectives, financial situation and needs from a licensed financial adviser. Investments with Trilogy are not bank deposits and are not government guaranteed. Past performance is not a reliable indicator of future performance.

Jump To Top