The recently announced Victorian State Budget for 2021-22 highlights that the state government has continued its support of Frankston’s health care and education sectors, and investment in key projects.

Big ticket items include:

• an additional $43 million for the Frankston hospital redevelopment, to $605 million;
• $15.1 million for Frankston High School; and,
• $1.8 million in urban renewal and social projects, including $475,000 to reactivate Nepean Highway.

The budget also has some changes in land tax rates for commercial and industrial property that owners need to be aware of. While the tax-free threshold for smaller properties has been increased, land tax rates for larger properties are increasing. 

From January 1, 2022, the tax-free threshold for applicable properties not held in trust will increase from $250,000 to $300,000. This means that applicable properties with a value of less than $300,000 will not be subject to land tax.  The State Government states that this will benefit approximately 61,000 taxpayers.

However, from January 1, 2022, the land tax rate will increase by 0.25 percentage points for applicable properties with a value of between $1.8 million and $3.0 million. Applicable properties with a value of over $3.0 million will see the land tax rate increase by 3.0 percentage points. These additional rates apply to general properties and those held in trust.

Further, a new land transfer duty threshold for high-value property transactions will apply for contracts entered into after July 1, 2021. For property transactions with a dutiable value above $2.0 million, the land transfer duty payable will increase to $110,000 plus 6.5% of the dutiable value in excess of $2.0 million.

For more information and to determine how these land tax and duty transfer changes will affect you, please see your accountant or business advisor.