Duties and taxes imposed by the Victorian Government are administered by the State Revenue Office Victoria. Many of these have been abolished as a result of the introduction of the GST. Further information on each can be obtained from the State Revenue Office Victoria (see ‘Contacts’ at the end of this chapter).
Payroll tax and other business taxes, and related expenses, are deductible from The total of a person’s annual pay and other earnings hat is used to calculate the income tax they must pay. for income tax purposes, if you can establish a link between the expenses and your income-producing activities.
Payroll tax is payable under the Payroll Tax A written law made by parliament. Also called an ‘Act of parliament’, ‘statute’ or legislation. 2007 (Vic). It is paid by employers on their employees’ remuneration, whether in cash or otherwise, where the employer’s total wage bill exceeds a threshold amount. Related employers may be ‘grouped’ so that the total wage bill exceeds the threshold even if it does not on an individual basis. In certain cases, wages A document that sets out what a person wants to happen to their money and other property after they die. be exempt from payroll tax (e.g. where the employee of a charity is engaged in charitable activities).
The Duties Act 2000 (Vic) imposes duty on certain types of transactions. This Act remains a complex area of law and is not dealt with at length here.
Certain types of agreements cannot be enforced unless they are put into writing and A state tax on the transfer of ownership of property such as land, or on leases. is paid. Although the rate of duty is often low, the total (1) A statement giving the details of a crime an accused person is claimed to have committed. (2) A personal property security. (3) A judge’s directions to a jury at the end of a case. can be considerable.
The Victorian Government imposes stamp duty on the following types of transactions:
- assignments and transfers of land;
- insurance contracts;
- declarations of A type of property ownership or arrangement where one party, known as the trustee, holds property or money for the benefit of another party, referred to as the beneficiary. over land;
- transfer or Legal transfer of some right to use property. For example, putting a lease over farmland into another person’s name, or giving another person copyright in a song you have written. of trust interests;
- some long-term leases; and
- applications for motor vehicle registration.
There are, however, a number of exemptions from stamp duty, such as where the transactions relate to a A voluntary, formal and legally binding agreement between two people to have a permanent relationship together. There must be a statement in front of official witnesses who register the marriage with the authorities. See also cohabitation; de facto; divorce; domestic relationship. breakdown and wills. Duty is no longer charged in Victoria on mortgages and transfers of shares in Victorian companies.
Land tax is payable under the Land Tax Act 2005 (Vic) and is levied annually on the unimproved value of all land you own at 31 December in the year preceding the assessment year, other than your principal residence.