- VCCI has made over 60 recommendations as part of its submission for the 2021-22 Victoria Budget
- Has labelled stamp duty as "inefficient" and "market distorting"
- Has proposed reforms to other taxes such as payroll tax
Stamp duty reform is one of many recommendations the Victorian Chamber of Commerce and Industry (VCCI) has made as part of its submission to the Victorian Government ahead of the 2021-22 State Budget.
In its submission, the VCCI had made over 60 recommendations which Chief Executive Paul Guerra says will enable, grow and make it easier to do business across the state.
“We are asking for a budget that delivers the conditions that business needs to get the cogs turning on our economic engine room once again. We’ve had the ambitious infrastructure agenda and now it’s time to empower business to do what they do best.
“It’s why the pillars of this year’s Budget Submission are to enable business, grow business and opportunity and ease restrictions and red tape.
Paul Guerra, Chief Executive VCCI
A key recommendation is to swap stamp duty for a land tax on all property purchases. VCCI says meaningful tax reform will attract investment to Victoria while making local businesses more competitive on both a domestic and international level. By structurally changing stamp duty – a tax the organisation labels as “inefficient” and “market distorting” – to a more broad-based tax, VCCI argues this will activate significant economic growth.
The submission refers to changes proposed in NSW and suggests Victoria should follow its neighbours lead in stamp duty reform.
In terms of other taxes, VCCI has recommended the Victorian Government to waive existing COVID-19 business payroll and land tax deferrals still owed by employers who have payrolls at or below $10 million based on 2019-20 reconciliation returns.
VCCI has also called for an increase to the payroll threshold to $1 million with a reduction to 4% for metropolitan Victorian employers and 1% for regional employers.
In other areas, VCCI has called for increased spending on infrastructure, such as $20 million to fund the development of a nature-based tourism strategy and $25 million for Ballarat’s Sovereign Hill master plan.
“In 2021-2022 we need to reset, recalibrate and evolve. The Victorian Chamber is advocating for a State Budget that focuses on reactivating and turbo charging business so it can help drive the economic recovery, while also helping the economy become more agile.”
“It is an opportunity to map out a prosperous future, built on the strength of Victoria’s world class research institutions, skilled workers, business owners and leaders and entrepreneurs,” concluded Mr Guerra.