Insights Library
LEGISLATIVE UPDATE: State Taxation Further amendment Bill 2025 introduced to Parliament
On 15 October 2025, the Victorian Government tabled the State Taxation Further Amendment Bill 2025 into the Legislative Assembly (Lower House).
The Bill introduces significant changes for the property industry including:
Congestion Levy
Increase and expansion of the Congestion Levy on 1 January 2026. Key changes are:
- Increase of the Category 1 Congestion Levy charge by 73 per cent from $2,150 to $3,030 per off-street parking space per year
- Increase of the Category 2 Congestion Levy charge by 73 per cent from $1,240 to $2,150 per off-street parking space per year
- Expansion of the Category 2 Congestion Levy zone to include Richmond, South Yarra and Prahran
There will be some concessions for major retail precincts within the congestion levy zone and retail car park operators in Category 2.
Commercial & Industrial Property Tax (CIPT)
A qualifying dutiable transaction will only result in the activation of the CIPT scheme where the duty chargeable is at least 50 per cent of the duty that would be payable on a standard land transfer.
Building Act
Clarifications have been made to ensure that the method for calculating the Building Permit Levy is fit for purpose.
Land Tax
Further exemptions could now apply for low value land with ‘on-site non-permanent shelter’ (which is designed to include caravans or pod homes).
Foreign surcharges
Absentee Owner Surcharge and Foreign Purchaser Additional Duty to no longer apply to New Zealand citizens living in Australia.
Watch this space for further information on progress of this Bill.
At Best Hooper we are at the forefront of all things property. Please reach out to our Property Law Team for all your property related matters.
