21/05/2025
๐ฉ๐ถ๐ฐ๐๐ผ๐ฟ๐ถ๐ฎโ๐ ๐ฎ๐ฌ๐ฎ๐ฑโ๐ฎ๐ฒ ๐ฆ๐๐ฎ๐๐ฒ ๐๐๐ฑ๐ด๐ฒ๐: ๐๐ฒ๐ ๐ง๐ฎ๐ธ๐ฒ๐ฎ๐๐ฎ๐๐
The Victorian Government has released its 2025โ26 State Budget on 20 May 2025, focusing on economic recovery and support for various taxpayer groups.
โก๏ธ๐ก๐ผ ๐ก๐ฒ๐ ๐ง๐ฎ๐
๐ฒ๐
There will be no new taxes in this budget.
โก๏ธ๐ฃ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐๐ฒ๐ฑ ๐ผ๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ป๐ด ๐๐๐ฟ๐ฝ๐น๐๐ ๐ผ๐ณ $๐ฒ๐ฌ๐ฌ ๐บ๐ถ๐น๐น๐ถ๐ผ๐ป ๐ณ๐ผ๐ฟ ๐ฎ๐ฌ๐ฎ๐ฑโ๐ฎ๐ฒ.
Net debt expected to remain below $200 billion, with plans to reduce debt relative to the economy.
โก๏ธ๐ฆ๐ถ๐ด๐ป๐ถ๐ณ๐ถ๐ฐ๐ฎ๐ป๐ ๐๐ป๐ณ๐ฟ๐ฎ๐๐๐ฟ๐๐ฐ๐๐๐ฟ๐ฒ ๐๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐๐, ๐๐ต๐ถ๐ฐ๐ต ๐ถ๐ป๐ฐ๐น๐๐ฑ๐ฒ:
โข $5 billion for public transport enhancements.
โข $976 million allocated for regional road improvements.
โก๏ธ๐๐ฑ๐๐ฐ๐ฎ๐๐ถ๐ผ๐ป ๐ฎ๐ป๐ฑ ๐๐ฒ๐ฎ๐น๐๐ต ๐๐๐ป๐ฑ๐ถ๐ป๐ด
โข $11.1 billion boost to the health sector, including funding for new hospitals and permanent pharmacist prescribing powers.
โข Continued investment in education to support workforce development.
โก๏ธ๐๐ผ๐ฟ ๐๐๐๐ถ๐ป๐ฒ๐๐๐ฒ๐
โข Payroll Tax Relief: Effective 1 July 2025, the annual payroll tax-free threshold will rise from $900,000 to $1,000,000. This adjustment means businesses with total annual Australian wages under $1 million will be exempt from payroll tax, potentially removing approximately 6,000 businesses from the payroll tax system.
โข Stamp Duty Reform: Stamp duty on commercial and industrial properties will be replaced with a new tax system.
โข Business Insurance Duty: Beginning from 1 July 2024, there will be a gradual abolition of business insurance duty, projected to save businesses $516 million over four years.
โก๏ธ๐๐ผ๐ฟ ๐๐ป๐ฑ๐ถ๐๐ถ๐ฑ๐๐ฎ๐น๐ & ๐ฆ๐ผ๐น๐ฒ ๐ง๐ฟ๐ฎ๐ฑ๐ฒ๐ฟ๐
โข Cost-of-Living Relief: Initiatives such as free public transport for those under 18 and free weekend travel for seniors aim to alleviate living expenses.
โข Emergency Services Levy: A new levy will be introduced to fund emergency services, potentially impacting households.
โก๏ธ๐๐ผ๐ฟ ๐ง๐ฟ๐๐๐๐
From the 2025 land tax year, certain trusts owning holiday homes may qualify for Vacant Residential Land Tax (VRLT) exemptions, provided specific conditions are met.
โก๏ธ๐๐ผ๐ฟ ๐ฆ๐ฒ๐น๐ณ ๐ ๐ฎ๐ป๐ฎ๐ด๐ฒ๐ฑ ๐ฆ๐๐ฝ๐ฒ๐ฟ ๐๐๐ป๐ฑ๐ (๐ฆ๐ ๐ฆ๐๐)
No direct changes, but the proposed Division 296 ( a proposed 15% tax on the earnings attributed to superannuation balances over $3 million ), which is a federal initiative, remains under consideration.
