Bushfire Related Tax Relief Measures (VIC)

This program aims to provide a range of tax relief measures for people affected by the 2019-20 bushfires.

Tax relief measures include:
1. Land tax
- Property destroyed or substantially damaged: Relief for 2020 land tax for affected property.
- Property affected but not destroyed or substantially damaged: Relief considered on a case-by-case basis.
- Property used to provide free accommodation to bushfire affected people:
a) Zero 2021 land tax for property used to provide free accommodation for over six months.
b) Reduced 2021 land tax for property used to provide free accommodation for more than one month and less than six months (calculated proportionately).

2. Land transfer (stamp) duty
- Purchase of replacement home because existing home destroyed in bushfires:
a) Relief of up to $55,000 in land transfer (stamp) duty on a replacement home.
b) For replacement homes valued above $1 million, the duty relief is capped at $55,000 with the balance of the duty payable.
c) Relief also applies to the purchase of vacant land on which a replacement home is built.
d) People have four years to claim this relief.
- Purchase of commercial or industrial property in the following local government areas: East Gippsland, Mansfield, Wellington, Wangaratta, Towong and Alpine.
a) A 50% concession on land transfer duty (stamp duty) will apply to contracts of sale entered into on or after 27 January 2020 for the purchase of commercial or industrial property.
b) There is no limit to the number of times a person can claim this relief, which will be available until 30 June 2023. After this date, a 50% duty concession on commercial and industrial property will be available across Regional Victoria.
c) On 13 September 2020, the Victorian Government announced that the 50% stamp duty discount for commercial and industrial property would apply across all of regional Victoria to contracts of sale entered into on or after 1 January 2021.

3. Motor vehicle duty
- Purchase of replacement motor vehicle by a person because existing vehicle destroyed in bushfires:
a) Relief of up to $2,100 per vehicle on up to two motor vehicles, including farm vehicles.
b) For replacement vehicles valued above $50,000, the motor vehicle duty relief is capped at $2,100 and the balance of the duty will be payable.
c) This relief must be claimed before 1 April 2022.
d) This relief does not apply to companies.
- Purchase of more than two replacement Victorian registered motor vehicles by a person because more than two vehicles were destroyed in Victorian or interstate bushfires:
a) Relief applies on two motor vehicles (see above).
b) Relief for additional vehicles to be considered on a case-by-case basis.

4. Payroll tax
- ‘Regional employer’ with a registered address in the following local government areas: East Gippsland, Mansfield, Wellington, Wangaratta, Towong and Alpine.
a) Payroll tax will apply at the reduced rate of 1.2125% for regional employers in bushfire affected local government areas. This halves the current payroll tax rate of 2.425% for these regional employers and will be backdated to apply from 1 July 2019.
b) The reduced rate applies until 30 June 2022. After this date, the reduced rate will apply for regional employers across Regional Victoria.
- Employer affected by bushfires but not eligible for automatic relief: Relief considered on a case-by-case basis.

Applicants are advised to contact State Revenue Office Victoria for more information.

Eligible applicants include Victorians affected by the 2019-20 bushfires.