Victoria Prime Minister Daniel Andrews said on Saturday that taxes are increasing in the country to allow his government to provide more than promised – not to fill a $ 5.2 billion gap in income.
The planned increases are part of the recently unveiled Victorian budget, which was presented by Treasurer Tim Pallas on Monday. The announcement of Pallas marked his fifth budget and the first of the government's second term Andrews. The tax plan was delayed by one month due to federal elections.
Andrews explained the decision made the day before the budget presentation. At the same time, he reiterated that the budget would generate a surplus and pay for all his election promises.
"We have always focused on obtaining this reserve, you use these surpluses and you promise within your means, so that if you have a reduction in your income or Unforeseen expenses, you are still able to deliver on your promises, "Andrews told reporters. "Yes, quite modest changes to the tax system will affect a very small number of Victorians and some people who are not but buy a property here, which allows us to go beyond the promises we made. to do even more than the billion dollars announced Friday in prisons. "
Foreign Real Estate Investors Facing Obstacles
The right of foreign investors will increase from 7% to 8% from 1 July. Nearly 3,000 foreign property owners will face an increase in the tax on homeowners from 1.5% to 2%.
In addition, about 1,700 property owners in the greater Melbourne area will have to pay land taxes on the vacant blocks they own near their homes, unless they pay close to $ 600. to consolidate the titles.
A property tax exemption will be removed for land located near a person's home, but under a separate title and without a separate residence, according to a report by ABC News. The government said it was putting an end to the exemption to discourage land banks.
Revenue estimates for stamp duties have been revised downward by $ 5.2 billion since November due to the slowdown in the real estate market.
Pallas also said that Victoria had registered the largest decline in real estate prices in the state's history over 12 months over the past year.
The government anticipates steady growth in stamp duty revenues between 2020 and 2021.
Can you afford to buy in this suburb? Find out how much you can borrow
Top suburbs:
Glendenning
,
rooted hill
,
the basin
,
month-end
,
alexandra hills
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it is important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs. What features or types of loans are suited to your needs? We will even help with the paperwork. In addition, an appointment is free.
We respect your privacy and treat all your information seriously – you can check
our privacy policy here
