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.

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