New Changes for 2020
The Victorian Government has introduced new changes regarding flammable cladding, foreign purchaser tax and principal place of residence (PPR) exemption.
From January 1, builders will pay a new levy to fund rectification works for high-risk buildings covered in flammable cladding. The levy applies to new permits for multi-storey buildings, valued at more than $800,000, but does not include single dwellings, developments in regional Victoria, schools and hospitals.
Foreign purchaser taxes
Foreign property owners will start paying more on their land tax, with the absentee owner surcharge to rise from 1.5 per cent to 2 per cent. This is set to affect about 3000 owners.
Principal place of residence exemption
The principal place of residence tax exemptions will no longer apply to contiguous land in metropolitan Melbourne, as the state government seeks to reduce "land banking". The exemption still applies where the principal place of residence is an apartment or unit with a separately titled car park or storage space, and for land in regional and rural Victoria.