Victoria’s Commercial and Industrial Property Tax has been in force since 1 July 2024, and the questions keep coming. Most buyers, sellers and even property professionals are still finding their footing.
We have pulled together the questions our team answers most often. The short version of each is at the top of the answer. The detail follows. If your question is not here, contact us and we will walk you through it.
For the full plain-English guide to how CIPT works, see What is CIPT? A Plain-English Guide for Buyers and Sellers.
The basics
Do I still pay stamp duty when I buy commercial property in Victoria?
Sometimes. You pay stamp duty if your purchase is the first sale of the property on or after 1 July 2024. That sale is called the entry transaction. Stamp duty is paid one final time, then the property moves into the CIPT system. After that, no buyer ever pays stamp duty on that property again, no matter how many times it changes hands.
If the property has already had its entry transaction, you pay no stamp duty on your purchase.
What is the entry transaction?
The entry transaction is the first sale of a commercial or industrial property in Victoria on or after 1 July 2024. It triggers three things: the final stamp duty payment, the start of the 10-year deferral, and the property’s permanent entry into the CIPT system.
When does the annual CIPT start?
Ten years after the entry transaction. The legislation builds in a 10-year deferral before the annual tax kicks in. For properties that entered the system in 2024-25, the first annual CIPT payment is due no earlier than 1 July 2034.
How is CIPT calculated?
The annual CIPT is a percentage of the property’s unimproved land value, not the building or improvements. The current rate is administered and published by the State Revenue Office at sro.vic.gov.au.
What does “unimproved land value” mean?
It is the value of the land itself, excluding any buildings, fixtures or improvements. The Valuer-General Victoria assesses this figure as part of the general valuation process used for council rates and land tax. It is typically lower than the property’s market value.
Paying for it
Can I pay the final stamp duty in instalments?
Yes. Eligible buyers can use the 10-year transition loan, facilitated by the Treasury Corporation of Victoria. Instead of paying the final stamp duty as a lump sum at settlement, you spread it over 10 annual instalments with interest.
It is not the right option for every buyer. Whether the transition loan stacks up depends on your cash flow, your interest rate alternatives, and how long you plan to hold the property. Your conveyancer can walk you through the maths.
Who is eligible for the CIPT transition loan?
The transition loan is available for eligible commercial and industrial property purchases that trigger the entry transaction. There are conditions around purchase price thresholds, borrower type and use of funds. The current eligibility rules are administered through the State Revenue Office and the Treasury Corporation of Victoria.
Is CIPT cheaper than stamp duty?
It depends on how long you hold the property. Short-hold buyers tend to come out ahead, because one or two annual CIPT bills cost less than a full lump-sum stamp duty would have. Long-hold owner-occupiers and generational holds often pay more over time, because the annual bills add up.
There is a tipping point, and for most properties it sits somewhere around the 10 to 11 year mark, but the exact figure depends on the property’s land value and your purchase price.
What it applies to
Does CIPT apply to industrial sheds?
Yes. CIPT applies to property used for commercial or industrial purposes in Victoria. Industrial sheds, warehouses, factories and similar properties fall within the system.
Does CIPT apply to retail shops with a residence above?
Mixed-use property is treated according to its qualifying use under the legislation. A shop-top dwelling may or may not fall within CIPT depending on how the property is classified. The 2026 provisional determination powers help speed up these classification questions, but mixed-use cases are assessed individually. Get specific advice before assuming either way.
Does CIPT apply to vacant land?
It depends on the land’s qualifying use. Vacant commercial or industrial-zoned land typically falls within CIPT, but the treatment depends on classification at the time of the entry transaction.
What if I bought before 1 July 2024, am I in CIPT?
No. If your property has not been sold since 1 July 2024, it is still in the old stamp duty system. It will enter CIPT at its next sale, whenever that happens, and your buyer will be the one paying the final stamp duty.
What if I subdivide a CIPT property?
Since 25 June 2025, subdividing a CIPT property no longer resets its CIPT status. The child lots inherit the parent lot’s position in the system. This closed off a structuring loophole that briefly existed in the first year of the reform.
Buying and selling
Do I need to disclose CIPT status when I sell?
Yes. The contract of sale must accurately reflect where the property sits in the CIPT system. That includes whether the property has had its entry transaction, when, and where it sits in the 10-year deferral. Disclosure is your conveyancer’s job to get right.
Can a buyer refuse to proceed if CIPT applies?
Only if the contract gives them that right. There is no statutory cooling-off period for commercial property in Victoria, which means once a commercial contract is signed, the buyer is committed unless a specific contract clause gives them an out. That is why pre-contract advice on CIPT status is essential.
What happens if I change the property’s use?
CIPT only applies to property in commercial or industrial use. If a property’s use changes, for example an industrial site rezoned and redeveloped as residential, the rules around whether the property stays in CIPT or drops out of it become important. This is one to flag with your conveyancer well before settlement.
Can a property leave the CIPT system?
Yes, in limited circumstances. If the property’s qualifying use changes, it can drop out of the CIPT system. The rules are detailed and the process involves the State Revenue Office. Get specific advice if you are considering a use change.
How it interacts with other taxes
Does CIPT replace land tax?
No. CIPT sits alongside existing land tax. They are separate taxes, calculated separately, and administered separately. A commercial property in CIPT may still attract land tax.
Does CIPT replace council rates?
No. Council rates are separate and continue to apply as normal.
Does GST still apply to commercial property under CIPT?
Yes. GST treatment is a separate question from stamp duty and CIPT. Commercial property transactions may still attract GST, with exemptions such as the going concern exemption and the margin scheme applying in certain cases. See Understanding GST When Buying Commercial Property in Victoria for the detail.
Who collects CIPT?
The State Revenue Office Victoria administers and collects CIPT.
The future
Will CIPT change?
It already has. The reform has been tightened twice since launch, first with the June 2025 subdivision rule, then with the 2026 amendments around provisional determinations and a retrospective tightening of the entry transaction definition.
The direction of travel has been anti-avoidance and tighter administration, not changes to the rate. The 2026-27 Victorian Budget did not announce any new CIPT measures. For the latest position, see our 2026-27 CIPT update.
Should I delay buying or selling because of CIPT?
There is no general right answer to this. The right decision depends on your circumstances, the property, your hold period, and what is in the contract. The wrong move is to delay or rush without proper advice. Talk to a commercial conveyancer who handles CIPT-affected transactions every week.
Still got questions?
CIPT is new, and the rules are still settling. The team at Tick Box Conveyancing handles CIPT-affected transactions across Victoria every week, from offices in Moonee Ponds, Mornington and Geelong.
If your question is not answered above, get in touch. We will tell you exactly where your property sits and what it means for your transaction.
Call 1300 363 165 or get a free quote online.
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