This presentation from the State Revenue Office (SRO) of Victoria outlines the Commercial and Industrial Property Tax (CIPT) reform that takes effect on 1 July 2024. The reform replaces land transfer and landholder duties on commercial and industrial land with an annual property tax of 1 % of site value, payable after a 10‑year transition period. The deck details the land types that fall within the CIPT scope (AVPCC codes 200‑499 and 600‑699), the categories of land excluded, and the criteria for a property to enter the CIPT scheme—including the need for a dutiable entry transaction, a minimum 50 % interest (or aggregated interests within three years), and the treatment of partial interests. It explains the transition period mechanics, conditions for duty exemption during the 10 years, and the process for final assessments in the 11th year. The presentation also covers change‑of‑use implications, updates to the Property Clearance Certificate, the continued lodgement process via PEXA, Duties Online and Form 58, and the optional 10‑year government transition loan provided by the Treasury Corporation of Victoria. The final slides summarise key takeaways and provide contact and education resources.
Topics
Scope of Land Covered – AVPCC Codes and Qualifying Uses
Defines the land that falls under CIPT using Australian Valuation Property Classification Code (AVPCC) ranges 200‑299 (commercial), 300‑399 (industrial), 400‑499 (extractive), and 600‑699 (infrastructure/utilities), plus certain mixed‑use and student accommodation properties.
Entry Criteria – Transaction Thresholds and Aggregation Rules
Explains how land enters the CIPT scheme: a dutiable entry transaction on or after 1 July 2024, with at least a 50 % interest (or aggregated interests within three years, including associated persons). Includes examples of qualifying and non‑qualifying scenarios.
Transition Period Mechanics – 10‑Year Duty Exemption and Final Assessment
Describes the 10‑year transition where duty is exempted provided the qualifying use continues, the transaction occurs ≥3 years after entry, and the interest matches the original entry. Outlines the issuance of the first CIPT assessment in the 11th year.
Change‑of‑Use Implications – Duty on Shifts to Non‑Qualifying Use
Details the duty that may arise when land changes from a qualifying to a non‑qualifying use, including a 10 % duty reduction for each calendar year since the exempt transaction.
Property Clearance Certificate Updates – New Information Fields
Specifies the additional data that will appear on the Property Clearance Certificate: AVPCC code, entry transaction date, and indication of partial transfers.
Lodgement Process – Continuity of Existing Systems
Reassures that land transfer duty and landholder transactions will still be lodged via Property Exchange Australia (PEXA), Duties Online, and the Duties Form 58 Smart Form.
Transition Loan Program – Government Financing Option
Outlines the optional 10‑year transition loan offered by the Treasury Corporation of Victoria, covering duty payment on entry transactions with fixed market‑based interest and secured by a first‑ranking statutory charge.