Victoria passed the State Taxation Further Amendment Bill 2025, introducing changes across multiple state tax laws—including commercial property tax, the congestion levy, duties, and land tax exemptions for New Zealand citizens, and eligibility rules for the first-home owner grant.
The Victorian government has passed the State Taxation Further Amendment Act 2025 (the Act), which received Royal Assent on 25 November 2025.
The Act implements changes to the congestion levy announced in the 2024–25 Budget Update and amends other taxation laws. The bill also aims to refine existing frameworks for property, land, and building taxes, and modernise levy and duty provisions to reflect current policy priorities.
The State Taxation Further Amendment Bill 2025 contains amendments to:
The Congestion Levy Act 2005
The Congestion Levy Act 2005 provides revisions to congestion levy amounts and concessions for specific parking spaces.
The Act makes several changes to the Congestion Levy Act 2005, which commence from 1 January 2026 to apply to the 2026 levy year onwards. The Act increases the category 1 area levy rate to AUD 3,030 per leviable parking space and the category 2 area rate to AUD 2,150 per space. Levy rates in 2027 and subsequent years will continue to be adjusted annually by the Consumer Price Index.
The Act provides new congestion levy exemptions and concessions. A 50% levy reduction will be available for conditional free parking offered by shopping centres and other retailers in the category 2 area exclusively for retail customers.
Duties Act 2000 and Land Tax Act 2005
The Act amends the law to provide tax exemptions for specific properties owned by New Zealand citizens. The Act amends the Duties Act 2000 and Land Tax Act 2005 to clarify how foreign purchaser additional duty (FPAD) and the absentee owner surcharge (AOS) apply to citizens of New Zealand. The amendments replace certain requirements for citizens of New Zealand to hold a special category visa with tests based on ordinary residence in Australia.
The Act amends the Duties Act 2000 to introduce an exemption for transfers involving a custodian of a trustee of a trust, such as the appointment or change of a custodian, a transfer back to the trustee or appointment of a sub-custodian. The amendment will commence from the day after Royal Assent.
Commercial and Industrial Property Tax Reform Act 2024
The Act amends the Commercial and Industrial Property Tax Reform Act 2024 and Duties Act 2000 to ensure that for direct transfers of land to enter the commercial and industrial property tax (CIPT) reform, duty must be payable on 50% or more of the dutiable value of the property, consistent with the original policy intent. The amendment will apply retrospectively to transactions from 1 July 2024, when the CIPT reform commenced.
First Home Owner Grant and Home Buyer Schemes Act 2000
The Act amends the First Home Owner Grant and Home Buyer Schemes Act 2000 (FHOGHBS Act) to deem a document sent electronically by the Commissioner of State Revenue (Commissioner) to be served when the communication is received. The amendment aligns the electronic service rules for the FHOGHBS Act with the Taxation Administration Act 1997 (TAA) to ensure consistency. The amendment will take effect from the day after Royal Assent.
The Act amends the Land Tax Act 2005 to raise the threshold for the Land Tax Hardship Relief Board to consider applications from AUD 1,000 to AUD 5,000 and remove the requirement for the Treasurer to approve the Commissioner’s grants of relief. This amendment will commence from the day after Royal Assent.
Earlier, the Victorian government introduced the State Taxation Further Amendment Bill 2025 to Parliament, aiming to update several key tax laws.
