As expected the Victorian state budget, revealed last week, was seen as positive for both individuals and businesses with the state election to be held later this year. There was much spending dedicated to public transport, roads, health and education, with the overall budget expected to be in surplus both now and in the coming years.
Some good news for business with the Victorian state budget dropping payroll taxes from 1 July this year, albeit only by 0.05%, from 4.9% to 4.85%. Importantly, first home buyers also receive a boost, with the stamp duty concession increasing from 40% to 50%. This is a genuine saving for first home buyers and one it is important for us to have knowledge around.
All eyes now turn to Joe Hockey, who will release the federal budget tonight. Much of this has been leaked to the media, with large savings measures expected to be implemented around pensions, other government entitlements and the size of government.
This is expected to be balanced while significant spending increases around roads and other infrastructure, as well as an increase in tax on petrol and a “debt levy” on higher income earners. We’ll update you in full next week.