Changes taking effect on 1 July 2024
Published on 27 June 2024
The start of a new financial year means updates to some fees, thresholds, levies and rates. Here is a summary of the Victorian taxation changes taking effect on 1 July 2024. Our website is being updated to reflect the changes.
Commercial and industrial property tax (CIPT)
Commercial and industrial property is moving from land transfer duty (also known as stamp duty) and landholder duty to an annual property tax known as the commercial and industrial property tax reform.
From 1 July 2024, commercial and industrial properties will transition into the CIPT reform if there is an eligible dutiable transaction or relevant acquisition.
Rates and thresholds
Payroll tax
Payroll tax-free threshold
From 1 July 2024, the payroll tax-free threshold will be lifted from $700,000 to $900,000 for annual returns, and from $58,333 to $75,000 for monthly returns.
In addition, the payroll tax deduction will be phased out for employers and groups with wages between $3 million and $5 million, with no deduction applied for employers and groups with wages of $5 million or more.
Find out more about changes to the payroll tax threshold
Wages exempt from payroll tax
The exempt motor vehicle allowance rate will increase from 78 cents per kilometre to 85 cents per kilometre.
The exempt amount for accommodation allowances will increase from $310.70 per night to $318.90 per night.
Find out more about wages exempt from payroll tax
Payroll tax for schools and educational providers
From 1 July 2024, the payroll tax exemption for non-government schools will only apply to schools declared by the Minister for Education.
Find out more about payroll tax for schools and educational providers
Growth areas infrastructure contribution (GAIC)
The GAIC rates for the 2024–25 financial year will be:
- $115,530 per hectare for type A land ($110,590 in 2023–24)
- $137,230 per hectare for types B-1, B-2 and C land ($131,360 in 2023–24).
The GAIC threshold for excluded building will increase from $1,382,590 to $1,444,370.
Wagering and betting tax
The rate of wagering and betting tax will increase from 10% to 15%. The tax-free threshold will remain at $1 million.
Learn more about the wagering and betting tax
Metropolitan planning levy (MPL)
The MPL threshold will increase from $1,207,000 to $1,271,000.
Commercial passenger vehicle service levy (CPVSL)
The CPVSL rate will increase from $1.15 per ride to $1.20 per ride.
Insurance
From 1 July 2024, duty on certain business insurance premiums will be gradually abolished over a 10-year period.
Duty on business insurance premiums will reduce from 10% to 9% on 1 July 2024.
Find out more about the abolition of duty on business insurance premiums
Motor vehicle duty
Luxury car threshold
The luxury car threshold will increase from $76,950 to $80,567. This impacts the rate of duty paid on certain passenger cars.
Learn more about motor vehicles
Drive-away deals
The 2024–25 guidelines, used by licensed motor car traders to calculate the dutiable value of motor vehicles sold on a ‘drive-away deal’ basis, are available now on the SRO website. These guidelines apply from 1 July 2024.
Read the 2024–25 drive-away deal guidelines
Fire services property levy (FSPL)
FSPL fixed charges will increase from $125 to $132 for residential property and $254 to $267 for non-residential property.
FSPL variable rates are set out in the Victorian Government Gazette S 227 (7 May 2024) and are available on our website.
Fees and interest rates
- Interest rate payable on a tax default will increase from 11.90% to 12.36%. This is calculated by adding the market rate of 4.36% in 2024–25 (3.90% in 2023–24) and premium rate of 8% together (TAA1997 s25).
- Freedom of Information application fee (2 fee units*) will increase from $31.80 to $32.70.
- Property clearance certificate fee (1.16 fee units*) will increase from $18.40 to $18.90.
- Interest payable on deferred GAIC will increase from 4.2216% to 5.1331%.
*For 2024–25, a fee unit is $16.33.
