Stamp duty should be swapped for land tax, according to Victoria’s leading business association

Major tax reform, including swapping stamp duty for a land tax, should be part of the next state budget, according to the Victoria’s leading business association.

Stamp duty should be reformed and swapped out for a land tax in Victoria’s next budget, according to the state’s leading business association.

The Victorian Chamber of Commerce and Industry has joined calls for major tax reform in a state budget submission that also urges for more than $790 million in new business packages.

They have delivered Treasurer Tim Pallas a shopping list of requests to help businesses recover from the coronavirus pandemic and to grow new industries across the state.

VCCI chief executive Paul Guerra said now was the idea time to change how tax worked in Victoria.

“The Victorian Chamber is proposing that we switch from stamp duty to a broadbased land tax, as part of a broader tax reform package,” he said.

“This switch will remove a huge burden on future property purchasers, especially first homebuyers, and also leads to greater revenue certainty for governments to deliver the programs that Victorians want.”

“With NSW moving down this path we cannot afford to be left in their wake.

“The Victorian Chamber would propose that the switch allows purchasers to opt-in and be grandfathered only to new property purchases.”

Stamp duty could be reformed and swapped out for a land tax in Victoria’s next budget

Other proposals include grants to help business adapt to changes in the wake of COVID-19, a fund to support the defence manufacturing industry, a task force on international students and the creation of a hub for space and aerospace businesses.

VCCI also wants the payroll tax threshold raised to $1 million and for the tax to be reduced to 4 per cent in metropolitan areas and 1 per cent in the regions.

“We are asking for a consolidation budget that delivers the conditions that business needs to get the cogs turning on our economic engine room once again,” he said.

“We’ve had the ambitious infrastructure agenda and now it’s time to empower business to do what they do best.

“It’s why the pillars of this year’s budget submission are to enable business, grow business and opportunity and ease restrictions and red tape.

“The Victorian Chamber is advocating for a State Budget that focuses on reactivating and turbo charging business so it can help drive the economic recovery, while also helping the economy become more agile.”