Brokers must comprehend Victoria’s commercial stamp duty reform as outlined by FBAA

Brokers in Victoria need to understand the upcoming changes to commercial stamp duty, set to take effect from July 1. The reform will replace land transfer duty on commercial and industrial properties with a new tax system. Prospective purchasers will have the option to pay stamp duty upfront or apply for a government transition loan. This change is crucial for brokers to grasp as it can impact their clients’ cash flow. The new tax system will be based on the property’s site value, offering more flexibility to eligible business owners. This reform will span over a 10-year transition period, allowing businesses to manage their cash flow effectively. The Treasury Corporation of Victoria will issue transition loans with an interest rate determined annually. Different case studies illustrate how businesses can benefit from this reform. Properties excluded from the reform include residential, primary production, and community service properties, among others. Brokers need to be aware of these changes to guide their clients effectively through the transition.

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