Proposed Victorian Stamp Duty Changes

Jan 8, 2021 | Accounting & Tax, Business

The Victorian Government has announced that stamp duty (land transfer duty) will be abolished for first-home buyers purchasing a home with a dutiable value of not more than $600,000. This will make the existing first-home buyer 50 per cent duty reduction that applies to the purchase of a home with a dutiable value of not more than $600,000 a full exemption. Further, duty will be phased-in for eligible first-home buyers who purchase a home with a dutiable value between $600,001 and $750,000. The new measures will apply for contracts entered into from 1 July 2017.

The Victorian Government has announced that it intends to increase the First Home Owner Grant (FHOG) from $10,000 to $20,000 for new homes built in regional Victoria and valued up to $750,000. This will apply for contracts signed from 1 July 2017 to 30 June 2020. Eligible first-home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 FHOG.

The Victorian Government has announced that the off-the-plan concession is being retargeted and will now only apply to buyers who occupy the property as their principal place of residence (PPR). Essentially, the off-the-plan concession will only be relevant to determining “dutiable value” for the purpose of the PPR duty concession, the new first-home buyer duty exemption or the new first-home buyer duty phase-in concession. This change will apply for contracts entered into from 1 July 2017.

The Victorian Government has also announced it intends to introduce a vacant residential property tax (VRPT)

Let us know if you need further information.

Related insights

Home is where the super is for many Australians 

Home is where the super is for many Australians 

Many Australians own a home. However, selling that home can also help boost your superannuation balance. As a result, many retirees use the downsizer measure to add to their super, which can provide tax benefits and long-term financial security.   How the downsizer...

read more

Subscribe for the latest news + updates

Get in touch to explore your opportunities with an LBW expert and discover your journey to a better financial future.