MINISTERS STATEMENTS: PROPERTY TAX
Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Trade and Investment) (14:09): I am pleased to say that as part of the 2023–24 budget the Andrews Labor government will deliver landmark reform to abolish stamp duty for commercial and industrial properties, boosting business growth and expansion. Removing up-front costs on commercial and industrial buildings will make it easier for businesses to get established and of course to thrive, boosting economic activity and growth. It means that a retail business can be more confident about moving to a new location or a logistics company requiring additional warehousing space will have fewer barriers to expansion. The cumulative increase in the size of the Victorian economy as a result of these reforms is up to $50 billion in net present value terms. Paul Guerra from the Victorian Chamber of Commerce and Industry described it as:
… landmark and generational productivity reform which businesses across Victoria will welcome.
This is exactly the type of progressive tax reform that is required to free up stamp duty charges which will accelerate building upgrades, stimulate investment in commercial property and free up more capital.
Brendan Coates from the Grattan Institute said:
Major state tax reforms are few and far between in Australia, which is what makes Tuesday’s Victorian budget very, very significant.
The Property Council of Australia said that this landmark reform ‘delivers a potentially huge long-term gain’. Transitioning away from stamp duty has been recommended of course by numerous reports and reviews over the years. While those opposite argue and infight, only the Andrews Labor government is getting on and delivering this nation-building reform.