The 2021 Victorian budget features $15 billion in “budget repair”, including almost $6 billion in new taxes. The budget outlines a range of concessions, subsidies, and projects provided by the government in a bid to get thousands of Victorians back to work and continue the path to recovery for our state’s economy.
See below for some of the winners and losers from the Victorian 2021 Budget.
WINNERS
Public transport commuters
$3.2B will be splashed on public transport services and infrastructure, including 25 new trains with additional funding to support the reliability of the V/Line regional train services and maintain the network.
Homebuyers
A new 50% stamp duty concession will apply to newly constructed residential properties valued up to $1M in Melbourne that has been unsold for less than 12 months. It will apply to contracts from 1/07/2021 to 30/06/2022.
A 100% stamp duty concession will apply to newly constructed residential properties valued up to $1M if the property has been unsold for more than 12 months from 21/05/2021 to 30/06/2022.
The $1M threshold will apply for contracts entered into from 1/7/2021 to 30/06/2023.
Landowners
From 1/01/2022, owners of land valued at less than $300,000 will no longer pay land tax.
Hospitality and diners
A new dining voucher scheme to attract Melburnians and visitors to Melbourne's CBD will cost $7.4M, which aims to revive foot traffic in the city and help businesses hard-hit by COVID-19 lockdowns.
The Melbourne CBD
The city will be rejuvenated after being devastated by multiple COVID-19 lockdowns, costing $107M to renew spaces, finance CBD arts, and cultural events, and extend the alfresco dining revolution.
Schools
$1.6B will be spent on school projects such as upgrades at 52 schools, building 13 new schools as well as additional expansions across other schools.
Hospitals and health services
$7B investment in healthcare services that includes $556M to go towards building and expanding 10 community hospitals in Craigieburn, Cranbourne, Pakenham, Phillip Island, Sunbury, Torquay, Mernda, Eltham, Point Cook, and Melbourne's inner-south.
The number of paramedics, triage care, and support staff for Ambulance Victoria will also increase thanks to $759M in funding.
Mental health
$3.8B commitment to transform Victoria's mental health system representing the biggest social reform in our state's history.
More than $1.5B will go towards community-based care, with up to 60 new local services to be set up in Victoria.
Another $310M will be spent on acute care - including $101M for 104 new mental health beds and ongoing funding for an additional 96 beds.
Young people and children are also set to benefit from a total of $842M in mental health and wellbeing support.
Vaccination production
$50M will be spent to support the manufacturing of mRNA vaccines in Victoria, such as the COVD-19 jabs Pfizer and Moderna.
Kindergartens
3-year-old kindergarten will be delivered for every child state-wide for the first time costing $167M.
The kindergarten rollout will expand to a further 15 areas in 2021 and will roll out to every Victorian community in 2022, building to a full 15-hour week program by 2029.
Women's sport
Build a state-of-the-art stadium for Australia's national women's soccer team, the Matildas, costing $101M.
LOSERS
Big businesses
From 1/01/2022 businesses with more than $10M in wages nationally will pay a levy of 0.5 % for every $1 of wages they pay above $10 million, and a further 0.5% for every $1 of wages they pay above $100 million.
Law-breakers
The cost of fines will rise again from 1/07/2021, with first-level speeding fines increasing by $20 to $227.
While driving, motorists who use their mobile phones will cop a $545 fine - a $49 rise.
Wealthy homebuyers
Property transactions above $2M will be slapped with a premium stamp duty charge of $110,000, in addition to the 6.5 % of the dutiable value of the property more than $2M.
Homeowners in rezoned councils
A new windfall gains tax will be established for properties that experience a rise in value due to council rezoning.
Wealthy landowners
Landowners will also be hit with land tax increases of 0.25 % for taxable land holdings between $1.8 million and $3 million. There will be a 0.30 % increase for taxable land worth more than $3 million.
Many of the comments in this publication are general in nature and we recommend that you seek professional advice to independently verify if the above applies to your circumstances.
To read more about all the support measures included in the budget, visit the Victorian Budget 20/21 website here: https://www.budget.vic.gov.au/
Meanwhile, if you have any questions in relation to the Victorian Budget and how it affects you, please contact our team on 03 9863 6997.
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