The Victorian Government is proposing stamp duty changes to commercial and industrial property acquired after July 1, 2024. The plan would see those properties being subject to an annual commercial and industrial property tax (CIPT).
A property acquisition that occurs after July 1 would still incur stamp duty, which could be paid up front or over a 10-year period by fixed instalments with interest. After the 10-year transition period is complete, the property would enter the new system and be subject to the annual CIPT. The CIPT will be payable at 1 per cent per annum of the property’s unimproved land value.
If you purchase a commercial or industrial property before June 30, you will incur stamp duty as usual. However, the property would never be subject to the CIPT while ownership remains unchanged. The new CIPT regimen will only apply to those commercial and industrial properties acquired after July 1.
The government hopes that abolishing the up-front cost of stamp duty and replacing it with the CIPT will make it easier for businesses to set up, invest in new land and buildings and move to new locations. If you are contemplating the purchase of a commercial or industrial property, you should consider the benefits to you of timing the acquisition either before or after July 1.
For assistance with your property law matters, get in touch with Richard Goldsmith on 5975 7588, or visit our website at www.carrollgoldsmith.com.au
CARROLL GOLDSMITH LAWYERS
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