1 JULY BRINGS IN GENEROUS FIRST HOME BONUS AND TAX CUTS

1 JULY BRINGS IN GENEROUS FIRST HOME BONUS AND TAX CUTS

Posted on 25. Jun, 2010 in Victoria

Victorians buying their first home from 1 July will have access to the most generous first home bonuses in Australia – worth up to $20,000 for newly constructed homes in Melbourne and $26,500 in regional Victoria.

Treasurer John Lenders said the boost in first home payments would help young Victorian families buy their own home, take pressure off the rental market and create over 24,000 Victorian jobs over the next 12 months.

“Our even more generous first home bonuses will help our construction industry stay strong, creating thousands of jobs for Victorian builders, plumbers, electricians, carpenters and other tradespeople,” Mr Lenders said.

Mr Lenders said from 1 July over 31,000 Victorian businesses would pay the lowest rate of payroll taxes for 35 years thanks to a $193 million payroll tax cut announced in the 2010 State Budget.

“We have cut the rate of payroll tax from 4.95 per cent to 4.9 per cent to help Victorian business capitalise on the worldwide recovery from the Global Financial Crisis,” Mr Lenders said.

Mr Lenders said not all the news from 1 July was good news for Victorians, as it marked 10 years since John Howard introduced his GST system.

“Victorians certainly won’t be throwing a party for the GST’s 10 year birthday,” Mr Lenders said.

“Under John Howard’s GST system every single Victorian has paid $2574 to the other states over the past decade.

“Despite this unfair treatment the Victorian Government has upheld its end of the bargain – we were the first and still one of only two states that has abolished all taxes and duties required under the GST agreement with the Commonwealth.

“We are proud of our record of cutting taxes but if we had have delayed our GST tax cuts like NSW did Victorians would have paid around $1.5 billion in extra taxes over the past ten years.”

Mr Lenders said as previously announced the government’s fees and fines would be indexed by 2.25 per cent which is lower than the latest annual level of inflation in Melbourne of 2.8 per cent.

He said the indexation of concessions ensured Victorians in need continued to receive an appropriate level of assistance by taking into account inflationary pressures. 

On top of the annual indexation of concessions the Brumby Labor Government’s Water and Sewerage Concession would increase from $216.60 to $245 from 1 July thanks to a funding commitment from the 2010 State Budget.

Mr Lenders said the increased water concessions would help low-income Victorians pay for the increase in water prices of between four and 20 per cent which are needed to pay for the record investment in water projects.  He said Melbourne households would continue to pay the lowest water bills of any major Australian city.

Mr Lenders said the automatic indexation of fines ensured that the Brumby Labor Government’s penalties continued to deter criminal and antisocial behaviour from 1 July.

He said the Victorian government received less than three per cent of its revenue from fees and fines for committing offences.

In other changes that will take effect on 1 July this year:

  • Penalties for a range of drunkenness and public order offences will double and the amount of time police can ban troublemakers from a designated or licensed premises will increase from 24 to 72 hours;

 

  • An extra $260 million will flow to the Brumby Labor Government’s regional infrastructure development fund (RIDF) taking the total government allocation to $884 million this financial year to boost regional job creation, business investment, and community pride;

 

  • Entry fees to national and metropolitan parks will be waived to increase visitor numbers by 25 per cent to 50 per cent at most sites;

 

  • There will no longer be a limit on how much unused water an irrigator can carry over from this season to the new season starting on 1 July 2010;

 

  • An increase in landfill levies to help councils, the community and industry protect our environment by reducing waste to landfill;

 

  • A new health strategy will provide capacity to treat an additional 1029 patients across 10 metropolitan, regional and rural Victorian hospitals;

 

  • Red tape in the financial services industry will be reduced when new nationally consistent consumer credit rules come into affect;

 

  • Trucks will be restricted from the right hand lane on the Princes Freeway between Altona North and Lara; and

 

  • New provisions to help injured workers return to work come into affect under the Accident Compensation Amendment Bill 2009.

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