Commercial and Industrial Property Tax Victoria 2026-27: Budget Update

The Commercial and Industrial Property Tax (CIPT) is the Victorian reform replacing stamp duty on commercial and industrial property. The 2026-27 Budget is the second full Budget since the reform commenced on 1 July 2024. This article summarises what the Budget Papers say: the latest property count, the four-year revenue forecast, and the fact that no new CIPT measures were announced. For the wider Budget picture, see our Victorian Budget 2026-27 property guide.

The 2026-27 Budget update on CIPT: transition continues

The 2026-27 Budget did not announce any new changes to the Commercial and Industrial Property Tax. Budget Paper 5, page 171 to 172, confirms the reform is continuing as legislated, with no new rates, thresholds, eligibility changes or transition adjustments. The Budget reports on progress only: the number of commercial and industrial properties that have entered the reform since 1 July 2024, and the forecast reduction in land transfer duty over the four years from 2026-27. CIPT does not appear in the revenue initiatives table at Budget Paper 3, page 100.

CIPT in brief: when it started and how a property enters

The reform commenced on 1 July 2024 (BP5 p.171-172). A commercial or industrial property enters the new system at its next sale on or after that date. Land transfer duty (stamp duty) is paid one final time on that sale. From that point, the property is in the CIPT system and is not subject to stamp duty on subsequent sales. An annual CIPT begins to apply 10 years after the final duty payment. A property that has not been sold since 1 July 2024 has not yet entered the reform, and the pre-reform stamp duty rules continue to apply until that triggering sale.

Properties in the new system: the latest count

Budget Paper 5, page 171 to 172, reports that more than 12,000 commercial and industrial properties have entered the CIPT reform since 1 July 2024. The Budget does not break the figure down by property type, location or sale value, and it does not project how many further properties are expected to enter the system over the forward estimates. The 12,000 is a cumulative count of properties that have had their qualifying sale and moved across to the new tax base.

The four-year revenue impact for businesses

Budget Paper 5, page 171 to 172, states that over the next four financial years, businesses are forecast to pay $714 million less in land transfer duty as a result of the CIPT reform. This is the aggregate reduction in stamp duty payable on commercial and industrial transactions across the forward estimates. The Budget does not allocate the $714 million across individual years and does not disclose the underlying transaction volume assumptions. It is presented as a single four-year total in the Budget Paper 5 commentary on land transfer duty.

The final stamp duty payment and the 10-year deferral

When a commercial or industrial property is sold on or after 1 July 2024, the purchaser pays land transfer duty on that sale (the final stamp duty event). The property then sits in the CIPT system, with no further stamp duty on later sales. The annual CIPT does not begin immediately. Budget Paper 5, page 171 to 172, confirms the 10-year deferral: a property that enters the system in, say, 2024-25 would first attract the annual CIPT in 2034-35.

The annual CIPT after year 10

After the 10-year deferral runs, the property becomes subject to an annual Commercial and Industrial Property Tax. The 2026-27 Budget Papers do not republish the rate. The current rate and the rules for taxable value are administered by the State Revenue Office and published at sro.vic.gov.au. Because the reform began on 1 July 2024, the first properties will not begin paying the annual CIPT until 1 July 2034 at the earliest. Until then, properties in the system pay no recurring CIPT charge. The 10-year window is set in the legislation and is not changed by the 2026-27 Budget.

What this Budget did not announce

The 2026-27 Budget did not announce any new CIPT rates. It did not bring forward the start of the annual CIPT for properties already in the system. It did not change the 10-year deferral, and it did not change which properties qualify as commercial or industrial for reform purposes. It did not introduce any new exemptions, concessions or relief measures specific to CIPT. The Budget Papers offer a progress statement and a four-year revenue figure, and otherwise refer to the reform as continuing under existing legislative settings. For the rate table and current administrative guidance, refer to sro.vic.gov.au.

Frequently asked questions

Did the Commercial and Industrial Property Tax change in the 2026 Victorian Budget? No. The 2026-27 Budget did not announce any new CIPT measures. Budget Paper 5, page 171 to 172, reports on the transition and the four-year revenue impact only.

When did the CIPT reform start in Victoria? The reform commenced on 1 July 2024 (BP5 p.171-172). Commercial and industrial properties enter the new system at their next sale on or after that date.

How many properties are in the CIPT system? The 2026-27 Budget reports more than 12,000 commercial and industrial properties have already entered the reform (BP5 p.171-172).

When does the 10-year deferred CIPT become payable? A property pays an annual CIPT 10 years after its final stamp duty event (BP5 p.171-172). For properties that entered the system in 2024-25, that is from 1 July 2034 at the earliest.

Does CIPT replace stamp duty on commercial property? At the qualifying sale, land transfer duty is paid one final time and the property moves to the new system, with no further stamp duty on later sales (BP5 p.171-172). See also our notes on stamp duty, land tax and, for developers in Train and Tram Zone Activity Centres, Infrastructure Contributions.

Talk to a Victorian commercial conveyancer

If you are buying or selling a commercial or industrial property in Victoria, the CIPT reform changes how stamp duty applies and adds a future annual tax to plan for. Tick Box Conveyancing acts on commercial transactions across Victoria and works with developer clients on portfolio and project work. Get a fixed-fee quote through our instant quote tool or contact us. Learn more about commercial conveyancing and our developer services.

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This article summarises the Victorian Budget 2026-27 as published on 5 May 2026. It is general information, not legal advice. For matters specific to your transaction, contact Tick Box Conveyancing.