After a week of pre-budget spending announcements, the Andrews Labor government has announced tax changes to rake in $120 million a year from Victorians ahead of its third budget.
Those in the market for a brand new car will pay more stamp duty from July 1 in a move Treasurer Tim Pallas says will put more than $100 million a year into the state's coffer.
For new passenger vehicles, stamp duty will increase from $6.40 per $200 of market value to $8.40, bringing the rate in-line with that for used cars.
Mr Pallas told reporters on Saturday it means stamp duty for a $23,000 car like a Toyota Corolla will rise by $230, from $736 to $966.
New cars had lower stamp duty in a bid to encourage people to buy locally made vehicles, Mr Pallas said.
Because the federal coalition government "chased out" local car manufacturing, the differential support "no longer served a purpose".
Property taxes are also in the line of fire and from next financial year the government will also close a property duty loophole between spouses.
Transfers between partners will no longer be exempt from stamp duty, except for changes for the principal place of residence or following a relationship breakdown.
It's estimated about 3000 people a year use such an arrangement.
"The idea of the transfer of investment properties between spouses is seeking to do pretty much one thing and that's to avoid liability to taxation," Mr Pallas said.
"We're going to clamp down on that and it's likely to bring in a sum in the vicinity of about $20 million a year to the state of Victoria."
And from 2019, land tax will be revalued annually instead of biannually.
The changes come after Premier Daniel Andrews held firm his government would "honour all its promises" when pressed on Friday over whether a pre-election commitment of no increase to taxes beyond CPI or no new taxes, charges, fees and levies still held for this year's budget.
The opposition is calling the changes a broken promise.
"Under Daniel Andrews the only thing rising faster than the crime rate is the tax rate," shadow treasurer Michael O'Brien said in a statement.
Throughout the week, the government had been on a pre-budget spending spree, continuing its building blitz and crackdown on crime.
Infrastructure announcements included $100 million for planning the North East Link toll road, $800 million for more level crossing removals and $271.55 million for the Melbourne Park redevelopment.
And in a bid to fix the law and order headache: $2 billion for more police and community safety initiatives, a $308 million overhaul of how the state's most violent criminals are handled and another $81.1 million for Ice Action Plan measures.
