Victorian businesses are another step closer to avoiding stamp duty on commercial property as the state Labor government introduces legislation to make the change.

Treasurer Tim Pallas confirmed Labor will on Wednesday introduce the Commercial and Industrial Property Tax Reform Bill in the state parliament.

The legislation abolishes stamp duty on commercial and industrial properties in Victoria, replacing it with an annual property tax.

The measure was announced in the 2023/24 state budget, with the government touting it as equating to thousands of jobs and a cumulative $50 billion benefit over the next 40 years.

The change is slated to take effect on July 1, under transition arrangements.

“We’ve worked closely with industry to deliver these changes, supporting Victorian businesses to grow and expand faster without the burden of stamp duty,” Mr Pallas said.

Victorian Chamber of Commerce and Industry CEO Paul Guerra said the change showed the state government’s willingness to engage on tax reform.

This post was originally published on Michael West.