Stamp duty will be abolished for first home buyers for purchases below $600,000, helping thousands of Victorians find their first home, as the Andrews Labor Government tackles housing affordability head on.
Those buying a home valued between $600,000 and $750,000 will also be eligible for a concession, applied on a sliding scale. The exemption and concession will apply to both new and established homes, in a move that is expected to help 25,000 Victorians find their first home.
In a further move to help tilt the scales back towards home owners, the Government will also remove off-the-plan stamp duty concessions on investment properties.
The off-the-plan stamp duty concession will now be available solely for those who intend to live in the property or who are eligible for the first home buyer stamp duty concession.
At the same time, a Vacant Residential Property Tax will address the number of properties being left empty across inner and middle suburbs of Melbourne.
Under the changes, owners who unreasonably leave these properties vacant will instead be encouraged to make them available for either purchase or rent.
The Vacant Residential Property Tax will be levied at 1 per cent, multiplied by the capital improved value of the taxable property. For example, if the property has a capital improved value of $500,000, the amount paid will be $5,000.
There will be a number of exemptions, recognising there are some legitimate reasons for a property being left vacant, including holiday homes, deceased estates and homes owned by Victorians who are temporarily overseas.
Each of these changes are part of the Labor Government’s plan to help more Victorians break into the housing market.
Quotes attributable to Premier Daniel Andrews
“In the past, if you worked hard and saved enough, you could afford to buy your own home. Now, that’s getting harder and harder.”
“These changes will help thousands of Victorians make the Great Australian Dream a reality.”
“With negative gearing and capital gains tax concessions, the odds are already stacked against first home buyers. This will help level the playing field.”
Quotes attributable to Treasurer Tim Pallas
“We are making it easier for first home buyers to get their foot in the door.”
“These initiatives are important steps towards ensuring today’s families and future generations will be able to afford somewhere to live.”
Reviewed 19 August 2020