WHO knew about this until we got a bill?

Before you panic - primary production land is exempt. If you have received an account from the State Revenue Office (as I did), asking you to pay an obscene amount of money - please check first.

As part of the 2023-24 State Budget, the Victorian Government introduced a COVID Debt Repayment Plan.

This included the following temporary changes to land tax and payroll tax, which are legislated to apply until June 30, 2033:

In a nutshell, the state government - who was responsible for the ‘lockdown of business in Victoria,’ for extended periods of time, resulting in many businesses going broke or barely managing to scrape through - is now demanding businesses that managed to survive; pay for the state debt resulting from the ‘said plan.’

Land tax

From the 2024 land tax year, there has been a change to land tax rates and thresholds, for the total taxable value (site value) of landholdings:

•            Between $50,000 and $100,000, a $500 flat surcharge will apply.

•            Between $100,000 and $300,000 (or $250,000 for trusts), a $975 flat surcharge will apply.

•            Over $300,000 (or $250,000 for trusts), a $975 flat surcharge will apply plus an increased rate of land tax by 0.10 percentage points.

These increases have been incorporated into the applicable rates for the 2024 to 2033 land tax years. Find out more about current land tax rates.

Payroll tax

From July 1, 2023, a temporary payroll tax surcharge will apply on wages paid in Victoria by businesses with national payrolls over $10 million a year.

A rate of 0.5 per cent will apply for businesses with national payrolls above $10 million, and businesses with national payrolls above $100 million will pay an additional 0.5 per cent.

These tax changes are legislated to apply until June 30, 2033.

In the treasurer’s report to government by State Treasurer Tim Pallas, he said, “we had to borrow $31.5 billion to save jobs and save lives and to get through”.

“We are not the only government in this position.

“But we’re the only government with a plan to manage it with our COVID Debt Repayment Plan.

“Since the pandemic, our state has bounced back.

“Economic output per person is expected to be 5 per cent higher in 2022-23 than it was in 2018-19, and unemployment is around its lowest level since the early 1970s. So now is the time to confront this situation squarely to repay the COVID debt that kept Victoria going during the pandemic.”

There would be a great many people who would challenge Treasurer Tim Pallas on the so called “bounce back,” theory – particularly those in retail trade.

There has been a noticeable change in people’s spending habits, post COVID. There is a very good reason many businesses are having ‘sales’ - because they have outlaid for stock that is not being purchased. There is a whole ‘make do with what you have’ attitude and priorities have changed post COVID.

I cannot be the only one who has noticed the interest rate rises, the hike in cost-of-living expenses of power, groceries and insurance. Surely the increase in pressure on aid agencies and ‘food share’ type agencies - cannot go unnoticed.

The numbers of staff employed by Councils and government have continued to rise, and politicians never knock back a pay rise even while the rest of us have been asked to reign in our spending on essentials to make mortgage repayments. The system is broken, and it would be a great time for our politicians to actually lead by example.

Those of us who are self-employed on the land, don’t give ourselves a pay-rise when the going is good because we know things can change drastically and very quickly and we need to be prepared when things turn to effluent.