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Coalition Government delivers the keys for first-home buyers

Tuesday, 03 May 2011

The Victorian Coalition Government is delivering on its commitment to slash duty by 50 per cent for eligible first home buyers, increase the current pensioner and concession card holder stamp duty concession and introduce a stamp duty exemption for young farmers. 

Treasurer Kim Wells said the Coalition Government is delivering the keys in the 2011-12 Victorian Budget for first home buyers who have been increasingly priced out of the home buyers market over recent years due to increasing property prices and cost of living pressures. 

“The Coalition Government understands how long it takes to save up for your first home and that massive stamp duty taxes are often the difference between the excitement of making a successful bid and the disappointment of being locked out of the property market,” Mr Wells said. 

 50 per cent land transfer duty cut implementation timetable 

 “From July 1 this year the Coalition Government will cut stamp duty by 20 per cent and will progressively increase this cut to 30 per cent from 1 January 2013, 40 per cent from 1 January 2014 and 50 per cent by September 2014,” Mr Wells said. 

 First Home Buyer Land Transfer Duty Reduction Schedule

Cut

-20 per cent

-10 per cent (30 per cent)

-10 per cent (40 per cent)

-10 per cent (50 per cent)

Timing

1 July 2011

1 January 2013

1 January 2014

1 September 2014

 First home buyers grant and bonus retained 

 Mr Wells said the Coalition Government is also delivering on its commitment to retain the existing first home buyers grant and bonuses for new homes. 

Eligible first home buyers are entitled to a $7,000 grant on an established home, valued up to $750 000 while eligible first home buyers of a new home up to a value of $600,000 are entitled to a bonus of $13,000 in metropolitan Melbourne, with an additional regional new home bonus of $6,500. 

Increased concessions for pensioners 

The Coalition Government is also increasing the pensioners and concession card holders stamp duty concession threshold from $440,000 to $750,000 from 1 July 2011. 

Mr Wells said that currently pensioners buying property valued above $440,000 get no benefit at all. 

The current concession scheme gives eligible pensioners a full exemption from stamp duty for properties valued up to $330,000, while a concession applies for properties valued between $330,000 and $440,000. 

The Coalition Government is increasing the concession eligibility threshold to $750,000 and extending the concession to holders of a Commonwealth Seniors Health Card. 

Pensioners will be entitled to a full exemption for properties valued up to $330,000, and a concession will be available for properties valued between $330,000 and $750,000. 

The new concession rates for pensioners and concession card holders will apply for contracts entered into on or after 1 July 2011. 

Stamp duty exemption for first farm buyers under 35 

“In our first Budget, the Coalition is also delivering stamp duty assistance for young farmers buying their first farm,” Mr Wells said. 

“The Coalition Government actively encourages Victoria’s young men and women to pursue a career in food and fibre production. 

“Young farmers aged under 35 who buy their first farmland property valued up to $300,000 will be exempt from paying stamp duty.” 

Young farmers will also be entitled to a concession for farmland properties valued between $300,000 and $400,000. 

“The Coalition Government is committed to helping relieve the pressure placed by stamp duty on Victorians,” Mr Wells said. 

“The stamp duty relief measures announced today are just one more example of the Coalition Government fulfilling our election commitments.” 

Property Cost*

Present Land Transfer Duty (Principal Place of Residence)

20 per cent cut - pay

50 per cent cut - pay

20 per cent cut - saving

50 per cent cut - saving

$100,000

$2,150

$1,720

$1,075

$430

$1,075

$150,000

$3,870

$3,096

$1,935

$774

$1,935

$200,000

$6,370

$5,096

$3,185

$1,274

$3,185

$250,000

$8,870

$7,096

$4,435

$1,774

$4,435

$300,000

$11,370

$9,096

$5,685

$2,274

$5,685

$350,000

$13,870

$11,096

$6,935

$2,774

$6,935

$400,000

$16,370

$13,096

$8,185

$3,274

$8,185

$450,000

$18,970

$15,176

$9,485

$3,794

$9,485

$500,000

$21,970

$17,576

$10,985

$4,394

$10,985

$550,000

$24,970

$19,976

$12,485

$4,994

$12,485

$565,000

$28,970

$23,176

$14,485

$5,794

$14,485

$600,000

$31,070

$24,856

$15,535

$6,214

$15,535

* REIV puts the median price for a house in Melbourne at $565,000 in the March Quarter 2011

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