The 2020-21 Victorian Budget handed down on 24 November delivers an unprecedented infrastructure investment to drive the State's recovery, with its centrepiece an ambitious Jobs Plan aimed at creating 400,000 jobs by 2025, half of them by 2022.
The combined impact of pandemic induced reductions in revenue and increases in vital expenditure has resulted in a forecast budget deficit of $23.3 billion in 2020-21, which is expected to reduce to $5.9 billion by 2023-24.
Net debt is projected to reach $86.7 billion in 2020-21 and grow to $154.8 billion by 2023-24.
Victoria's economy is forecast to contract by 4% in 2020‑21, due to lower consumer and business confidence and the necessary health restrictions.
The unemployment rate is expected to peak at 8.25% this quarter and fall to an average of 7.75% in 2020-21.
Chartered Accountants Australia and New Zealand's infographic highlights the key budget announcements.
Get more information
Find out what this year’s budget means for you and your clients in the 2020-21 VIC Budget Papers.Read more
Tax-related measures include:
- businesses with annual Australian payrolls less than $10 million will receive a non-refundable new jobs tax credit of 10 cents for every dollar of Victorian wages paid in 2020-21 and 2021-22 above the previous year’s level;
- the threshold for paying payroll tax will be increased on an annual basis from $40,000 to $100,000 for businesses registered for payroll tax in Victoria, commencing from 1 July 2021.
- a 50% land transfer (stamp) duty concession for commercial and industrial property transactions in regional Victoria for contracts entered into from 1 January 2021, rather than 1 July 2023 as announced in the 2019-2020 Budget.
- a land transfer (stamp) duty waiver of 50% on purchases of new residential property in Victoria, and a 25% waiver for existing residential properties, will be available for purchases with a dutiable value of up to $1 million, for contracts entered into between 24 November 2020 and 30 June 2021.
- A 50% land tax discount for eligible build-to-rent developments and a full exemption from the Absentee Owner Surcharge up until 1 January 2040.
- the land tax concession provided to clubs carried on exclusively for the social, cultural, recreational, literary or educational interests of their members will be replaced with a land tax exemption from 1 January 2021.
More information on tax measures
More information on the State tax measures can be found on the State Revenue Office Victoria webpage.Find out more