State Treasurer Tim Pallas will hit high-end property buyers, well-off landlords and exclusive men-only clubs with big hikes on stamp duty and land tax in an attempt to begin the tough task of budget repair.
Developers and land speculators who reap windfall gains when their property is rezoned would also be hit with a 50 per cent tax if the gain is worth $500,000 or more in provisions set to be announced in next Thursday’s state budget.
The changes would raise $2.4 billion over the next four years, with Mr Pallas saying it was “only fair that those making large profits return a reasonable proportion to the community”.
The budget would also reveal a 10 per cent increase in fines imposed by courts, police and traffic officers that would funnel another $250 million into state coffers as Victoria grapples with record levels of debt and deficit.
In one provision, the government says it would strip $1 million in land tax concessions from private men-only clubs, saying gender-exclusive establishments have been getting tax breaks meant for non-profit groups “while discriminating against half the population”.
“The days of giving elitist organisations like the Melbourne Club the luxury of a land tax concession are over,” Mr Pallas said.
However, the brunt of the new tax increases would be worn by top-end landlords, with the state’s land tax haul to soar by more than 10 per cent, or more than $1.5 billion over four years, and stamp duty to raise $761 million by adding a premium to stamp duty payments for property transactions valued at more than $2 million.
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