Commercial & Industrial
Property Tax Reform
Victoria is progressively abolishing stamp duty on commercial and industrial property, replacing it with an annual 1% Commercial and Industrial Property Tax (CIPT) after a 10-year transition period. This guide explains what it means for your property.
The Reform
A Fundamental Shift in How Commercial Property is Taxed
The Commercial and Industrial Property Tax Reform Act 2024 (Vic) received Royal Assent on 21 May 2024 and took effect from 1 July 2024. It represents the most significant reform to commercial property taxation in Victoria in decades.
Under the old system, every transfer of a commercial or industrial property triggered an upfront stamp duty liability — often a substantial cost that impeded business investment and mobility. The reform replaces this with a single final stamp duty payment at the point of entry, followed by an annual tax of 1% of the property's site (unimproved) value commencing 10 years later.
Critically, once a property enters the reform, subsequent transactions are generally exempt from stamp duty, provided the property retains a qualifying commercial or industrial use. This creates a significant incentive for businesses to invest, expand, and relocate within Victoria.
Old System
- ✕ Upfront stamp duty on every transfer
- ✕ Duty payable each time property changes hands
- ✕ High transaction costs impede mobility
- ✕ No annual property tax on commercial land
New System (CIPT)
- ✓ One final stamp duty at entry
- ✓ Subsequent transfers generally duty-free
- ✓ Lower transaction costs encourage investment
- ✓ 1% annual CIPT after 10-year transition
Key Dates
- 1 July 2024 — Reform commences; entry transactions begin
- 4 December 2024 — Non-standard transaction exemptions introduced
- 25 June 2025 — State Taxation Acts Amendment Act 2025 amendments
- 2034 (earliest) — First CIPT assessments issued (2024 entry properties)
SMSF Trustees — Important
SMSF trustees are ineligible for the TCV Transition Loan. The statutory charge securing the loan likely contravenes SISR Regulation 13.14, which prohibits charges over SMSF assets. Seek specialist advice before any SMSF acquisition of commercial property.
Navigate the Guide
Comprehensive CIPT Reference
Entry Logic Hub
Understand what triggers entry into the CIPT reform — qualifying transactions, the 50% interest threshold, aggregation rules, and landholder provisions.
Qualifying Use
Determine whether a property has a qualifying use via AVPCC codes (200–499 and 600–699), the sole or primary use test for mixed-use properties, and eligible student accommodation.
10-Year Transition Timeline
Visualise the full lifecycle of a property under the reform — from the entry transaction and final stamp duty payment through to the commencement of annual CIPT.
CIPT Decision Tree
Step through the CIPT Logic Engine — an interactive diagnostic tool that determines whether your property enters the reform and whether a transition loan applies.
TCV Transition Loan
Explore the government-facilitated loan from Treasury Corporation of Victoria — terms, eligibility criteria, application process, and critical SMSF restrictions.
Obligations & Administration
Key administrative obligations including change of use notifications (30-day deadline), property clearance certificates, assessments, objections, and anti-avoidance provisions.
Practitioner Risk Guide
Due diligence checklists, section 32 disclosure obligations, change of use duty warnings, and risk management guidance for legal and tax professionals.
Primary Legislation
Commercial and Industrial Property Tax Reform Act 2024 (Vic)
Royal Assent: 21 May 2024 · In force: 1 July 2024