Com­mer­cial and Indus­tri­al Prop­er­ty Tax (CIPT) in Vic­to­ria, effec­tive from 1 July 2024:
(short read > 1 minute)

The land­mark reform, announced in the 2023 – 24 State Bud­get, tran­si­tions com­mer­cial and indus­tri­al prop­er­ties from land trans­fer duty (also known as stamp duty) to an annu­al prop­er­ty tax known as the CIPT.

Entry Trans­ac­tions: Prop­er­ties will enter the new tax scheme upon eli­gi­ble trans­ac­tions occur­ring on or after 1 July 2024.

CIPT Rate: Start­ing 10 years after the ini­tial entry trans­ac­tion, prop­er­ty own­ers will pay 1% of the land’s site val­ue annually.

Exemp­tions & Con­ces­sions: While duty still applies to entry trans­ac­tions, con­ces­sions can also apply, such as the 50% con­ces­sion for pur­chas­es of region­al com­mer­cial and indus­tri­al land. Cer­tain con­ces­sion­al trans­ac­tions, includ­ing those sub­ject to the cor­po­rate recon­struc­tion con­ces­sion, will not trig­ger entry into the tax reform scheme.

Assess­ment & Pay­ment: CIPT will be assessed on a cal­en­dar year basis, using the same val­u­a­tions as land tax. It will be charged sep­a­rate­ly and in addi­tion to any land tax payable for the land.

Tran­si­tion Loan Pro­gram: Eli­gi­ble pur­chasers can access a gov­ern­ment tran­si­tion loan for the duty pay­ment on the entry trans­ac­tion. The loan, pro­vid­ed by the Trea­sury Cor­po­ra­tion of Vic­to­ria (TCV), offers fixed mar­ket-based inter­est rates.

Stay informed about this sig­nif­i­cant tax reform and its impli­ca­tions for com­mer­cial and indus­tri­al prop­er­ty owners!

This arti­cle is a sum­ma­ry from the State Rev­enue Office web­site and is infor­ma­tion­al only. For fur­ther details, vis­it the State Rev­enue Office web­site or con­sult with your account­ing and/​or legal professionals.

https://​www​.sro​.vic​.gov​.au/​c​o​m​m​e​r​c​i​a​l​-​a​n​d​-​i​n​d​u​s​t​r​i​a​l​-​p​r​o​p​e​r​t​y-tax

https://​con​tent​.leg​is​la​tion​.vic​.gov​.au/​s​i​t​e​s​/​d​e​f​a​u​l​t​/​f​i​l​e​s​/2024 – 05⁄24 – 016aa-authorised.pdf