Following the 2015/2016 State Budget, the SRO’s changes for overseas buyer become effective 1 July 2015, as explained below:
“2015-16 State Budget
The Victorian Government 2015-16 State Budget has announced changes to land tax, land transfer duty (stamp duty) and motor vehicle duty.
A 3 per cent surcharge will apply to foreign purchasers when they buy or acquire residential property in Victoria, either directly or indirectly.
This surcharge, which is in addition to any stamp duty or landholder duty payable, is proposed for contracts entered into (or a relevant acquisition made) on or after 1 July 2015.
A 0.5 per cent land tax surcharge will apply to land owned by absentee owners.
This surcharge, which is in addition to any land tax payable, is proposed to commence from the 2016 land tax year.
This year’s State Budget also includes changes to motor vehicle duty.
Motor vehicle exemptions for mobile plant and special purpose vehicles (type P) will begin from 1 July this year. These vehicles are defined in the Road Safety (Vehicles) Regulations 2009.
Mobile plant are those considered to be any non-passenger self-propelled vehicle constructed for specific tasks which may use public roads for access and that are under 4.5 tonnes.
Plant-based special purpose vehicles are more than 4.5 tonnes and generally make little use of the road network, such as backhoes, excavators, bulldozers, headers, scrapers, tractors, off-road water sprayers.
Further details of all announcements are available on the State Budget website.”
SOURCE: State Revenue Office of Victoria website – www.sro.vic.gov.au