Yahoo Finance Save $12,000+: Another state slashes stamp duty
Victorians purchasing homes of up to $1 million have been given a huge leg up by the state government in its latest budget measures.
Home buyers will be given a stamp duty waiver of 50 per cent on new residential homes, and 25 per cent for existing homes.
The new measures will be applicable to purchases made from Wednesday to 30 June 2021, the state’s Budget papers revealed.
“2020 has been tough,” Victorian Treasurer Tim Pallas said. “The toughest year most of us will ever live through.”
“It’s shone a bright light on some of the dark cracks in our society and in our economy: an economy that asks workers to choose between their health and feeding their family...Too many Victorians without the security and stability of a home.”
In some areas of Victoria, stamp duty on new homes can start at around $18,000, but go up to as high as $25,000, for a median-priced home, according to Domain.
Stamp duty on existing homes can also cost nearly $50,000, meaning buyers can save around $12,500 with the 25 per cent discount.
Homes above $1 million will still require stamp duty.
What else do home buyers get in the Vic budget?
The state government also extended the $20,000 First Home Owner Grant for people buying or building a new home in regional Victoria.
“This extension gives more Victorians the opportunity to live locally and enter the property market for the first time, while also supporting jobs in regional Victoria,” the Budget states.
Victorians purchasing old or new homes can also take advantage of a $500 million Homebuyer Fund, which will contribute to the purchase price of a house in exchange for a proportionate share in the property.
“This reduces the size of the deposit required and will help Victorians afford their homes sooner.”
NSW axes stamp duty
Earlier this month, NSW revealed in its state Budget that it would completely remove stamp duty, and instead replace it with a smaller annual land tax.
The tax would be set at a fixed rate, but owner-occupied homes will attract a lower tax rate than investment properties.
Under the plan, first home buyers who would previously have been eligible for stamp duty concessions will instead receive $25,000 grants.
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