Victorian law changes from 1 July 2019
June 30, 2019
Building permit numbering system
The new building permit numbering system commences on 1 July 2019. A building surveyor will not be able to issue a building permit unless the building permit levy has been paid and the VBA has issued a building permit number.
While a lot of work has been done to establish this new system there may be a few delays while the industry adjusts. HIA does recommend to members that the best way to minimise the risk of delays in obtaining building permits is making sure that all relevant information is provided to the building surveyor when the application for the building permit is made.
Reporting variations and cost increases
The law in Victoria from 1 July 2019 will require reporting on increases in the cost of building work under a building permit. Any increase in the cost of building work by at least $15,625 will trigger an obligation to report the increase to the VBA. This report may then trigger an increase in the building permit levy. The obligation to report will be on the owner unless the building permit needs to be amended, in which case the person applying for the amendment must report the increase.
HIA will provide further information to members about this new requirement. It is however critical to appreciate that this law change makes it even more important for builders to make sure that client’s sign variation documents.
Other tax matters
Members will be aware of the major changes to stamp duty on development agreements and other arrangements to develop land. These changes commenced on 19 June 2019.
From 1 July 2019 the following changes of relevance to the residential building industry will commence:
1. The land transfer duty surcharge on foreign buyers of residential property will increase to 8%.
2. A land transfer concession of 10% will apply to commercial and industrial transactions in regional areas. This will increase up 10% each following financial year until the concession is 50%.
3. Payroll tax rate for regional businesses will be further reduced and the payroll tax threshold will increase to $675,000.
For further information, please call 1300 650 620 to speak to a Workplace Adviser.