EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
At a glance
- Commencing on 1 July 2024, land enters the tax reform scheme if:
- there is a qualifying dutiable or landholder transaction; or
- there is an entry consolidation or subdivision; and
- the interest in land is 50% or more (standalone or aggregated basis); and
- the land has a qualifying use.
- Once land enters the tax reform scheme:
- stamp duty is payable for a final time (subject to certain rules); and
- CIPT will be imposed 10 years after land enters the tax reform scheme
- Government transition loan may be available.
As part of the Victorian FY24 State Budget, the Victorian Government announced its proposed landmark Commercial and Industrial Property Tax Reform (CIPT Reform) to replace stamp duty on commercial and industrial property with an annual property tax based on the unimproved value of land.
The Commercial and Industrial Property Tax Reform Bill 2024 (the Bill) was introduced into Victorian Parliament on 20 March 2024. The Bill sets out the legislative framework for the CIPT Reform which we have summarised below.
The CIPT Reform represents a significant departure from the current Victorian stamp duty regime. Owners of commercial and industrial land will need to be across this significant change as it will inform behaviour in how such land is transacted going forward and, overtime, add considerably to the holding costs of owning such property.