Victorians property owners will face millions of dollars in new taxes to be unveiled in this year’s state budget.
Treasurer Tim Pallas is expected to officially announced increased property taxes for heritage property and residential land owners on Saturday as well as an increase for foreign investors.
The taxes are designed to go some of the way to addressing the $5.2 billion shortfall in stamp duty to be forecast in Monday’s budget.
The duty on foreign investors buying properties will rise from 7 to 8 per cent from July 1 this year, while from January 1 around 3000 property owners will be hit with a rise in the absentee owner tax from 1.5 to 2 per cent.
Mr Pallas is selling the tax increase on foreign owners as an act of fairness that will raise $330 million over four years.
“It’s only right that foreign property buyers contribute more so we can keep building the vital projects we need across our state,” he said.
Local owners will also contribute more.
Heritage property owners who have traditionally paid less land tax because of the heritage status will also pay more, with the government to change what it calls a “loophole” affecting 13,000 buildings.
Land tax will also be applied to 1700 blocks of land across the metropolitan area in a bid to “discourage land banking” by people who own vacant residential land attached to their residence but on a separate title.
Those in the market for luxury cars worth upward of $100,000 will be hit by a duty increase form July 1, expected to raise $260 million.
And Victoria will join the rest of the country when it introduces a 2.75 gold royalty to all but small miners from January 1, to generate an expected $56 million for the budget.
In the spending column, the treasurer has already announced $2.5 million to maintain the Fixed Threat Assessment Centre, where mental health experts work with individuals identified as having extremist ideologies showing indications of radicalisation.
Clinicians will receive an extra $19 million to support their work, while $2.5 million will be put towards CBD security, which already includes CCTV and bollards.