New taxes, less stamp duty cash, but a surplus and all election promises paid for is what Victorians are being told to expect in this year’s state budget.
Treasurer Tim Pallas will deliver his fifth budget and the first of the Andrews government’s second term on Monday.
The fiscal plan was delayed by a month in April due to the federal election and at the weekend Mr Pallas revealed there would be new and increased taxes.
The foreign investor duty will rise from seven per cent to eight per cent from July 1 this year and about 3000 foreign owners will be hit with an increase in the absentee owner tax from 1.5 per cent to two per cent from January 1.
About 1700 metropolitan Melbourne property owners will face paying land tax on vacant blocks they own next to their homes, unless they pay about $600 to consolidate titles.
There’s also a duty increase on luxury cars worth upward of $100,000 expected to raise $260 million and a new 2.75 per cent gold royalty to all but small miners.
The budget has also been hit with a $5.2 billion write-down in property stamp duty over the next four years due to the market downturn.
But the government has been insistent all of its election promises will be paid for and delivered with the books keeping in surplus.
“We’ve always been focused on having that buffer, you run those surpluses and you promise within your means so that if you do have a write-down in revenue or you have unexpected expenditure you’re still able to deliver on your promises,” Premier Daniel Andrews said on Sunday.
“Yes there’ll be some additional revenue coming in from some fairly modest changes to the tax system that affect a very small number of Victorians and some people who are not Victorians but buy property here and that allows us to go beyond the promises we made to do even more like the billion dollars we announced in prisons on Friday.”