The Budget continues Victoria’s reliance on property taxes for the foreseeable future. The absence of structural reform to key tax areas is having a detrimental impact on sovereign risk and lessens the appeal for investors from interstate and around the world. If Melbourne is going to grow to match London’s population as the Treasurer suggested, it’s going to need a lot more to offer than cultural vibrancy and economic potential.
The expanded off-the-plan stamp duty concession available for apartments, units and townhouses is to be extended for an additional 12 months, allowing more investors, trusts and companies to access potentially significant stamp duty savings.
The congestion/car parking levy, which aims to reduce traffic congestion and divert funding towards public transport, will increase from 1 January 2026 for existing car parking spaces in Categories 1 and 2 and the levy area will also be expanded to include all of Richmond, Abbotsford and along St Kilda Road.
The new levy will replace the fire services property levy from 1 July 2025 but at much higher rates to be borne by property owners.
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