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Abolition of Duty On Purchase of Commercial and Industrial Property

The Victorian Government has announced an abolition of duty on purchase of commercial and industrial property from 1 July 2024.

Man using magnifying glass to look at building on stamp duty blocks

What is happening?

There will no longer be duty payable when you buy commercial or industrial property in Victoria, instead, you will still have to pay land tax and an annual property tax set at 1% of the property’s unimproved land value.

This won’t apply to residential properties.

Money stacked up next to house

How it will work

From 1 July 2024, commercial and industrial properties will transition to the new system

There will first be a transitional period to allow the purchaser to either pay stamp duty or the equivalent amount over 10 years.

Once the property enters this new system, stamp duty won’t ever be payable again and the annual property tax will be paid.

This scheme won’t apply to property purchased before 1 July 2024 for current owners of commercial or industrial properties.

Benefits

Is expected to add $50 billion to the Victorian economy.

VCCI CEO Paul Guerra described the move as a “generational productivity reform”.

Will accelerate building upgrades, stimulate investments and free up capital, encouraging economic growth.

Business newspaper about economic growth

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