Victoria set for stamp duty discounts until June 2021
Prospective Melbourne home buyers were the big winners from the Victoria budget last night, with stamp duty concessions announced until the end of June 2021.
The biggest discounts are for new residential builds valued under $1 million, which will see home buyers save 50 per cent on stamp duty, up to a total of $27,500.
Buyers of existing residential property under $1 million will secure a 25 per cent saving of up to $13,750. Victorian Treasurer Tim Pallas said the decision was 'about building a strong recovery and an even stronger future for our state.'
“With a waiver on stamp duty, we’ll help more Victorians find their home and get more Victorians back to work,” Treasurer Tim Pallas said.
The budget measure was part of the government’s “Big Housing Build”.
The state government forecasts an 11 per cent peak-to-trough fall in house prices, with the lowest point being next in June.
They forecast that prices will only recover to pre-COVID-19 levels in 2022-23. The budget papers revealed a 25 per cent drop in stamp duty revenue to $4.6 billion in the 2020-21 financial year.
“Land transfer [stamp] duty is expected to recover from 2021-2022 and grow by an average of 15.4 per cent a year, over the forward estimates, but is not expected to reach the 2018-2019 level until 2022-23,” the budget papers stated.
“It’s about equity and putting the support and effort where it can best have effect,” Pallas said.
“The aim is to get as many people in that price bracket [$1 million] and below back into the market.”
The Andrews government has also introduced a $500 million Victorian Homebuyer Fund, offered to those unable to afford a house deposit of 20 per cent.
That's available for purchases of new and established property.