Huge savings ahead as stamp duty to be halved
Stamp duty in Victoria is set to be halved for some buyers, according to the state government.
Almost 15,000 first home buyers in Victoria have taken advantage of 20 per cent stamp duty cuts, with more than $40 million spent by the state government in the last financial year on these initiatives.
Treasurer Kim Wells yesterday said that from 1 January 2013, the total stamp duty cost would be reduced by 30 per cent for eligible first home buyers.
These reductions will be continued to 50 per cent by September 2014, "saving first home buyers up to $15,535," said Mr Wells.
See our Stamp Duty Calculator.
"We understand that it can be tough going to get a foothold in the housing market, which is why we are investing significantly in support for first home buyers," he said.
He also pointed to a weaker housing market at present making conditions ideal for first time investors, with growth ahead.
“Victoria's property market is still strong but it has slowed in the past few years, making it an ideal time for first time buyers to enter the market," he said.
"Consumer sentiment also seems to be on the rebound, with new figures last week showing Victoria was the only state in Australia where consumer sentiment increased."
- <p>Is it Guilt? Not only are we tax collectors for the government, but also co investors with them GCT on investment properties makes it possible for govt to pick up a nice windfall on the sale of a rental property.<br>Has this tax on residential housing influenced the rising prices of housing.<br>I work like a dog on my rentals can't claim my labour and my improvements mean govt get more tax on the improvements when I sell.</p>0
- <p>I have never had any help with stamp duty. The scheme wasn't around when I started in property. First home buyers should get a subsidy if the house is over $400k in value. I had to work harder and save more back in the day so why should first timers now days get all the help.</p>0
- <p>Stamp Duty is in exactly the same position as "bracket creep" for personal tax rates. The rates of duty have hardly changed since the 80's when a home at the top of the market might cost$250k and the average first home purchase was $75k. Indexing the stamp duty brackets with inflation would have been the right way to go, but it is a cash cow for the state governments and nothing will make them change it.</p>0
- <p>I think they should cut it across the board as well for first home buyers. Why should young families who are trying to secure their first family home be hit with such a high fee??</p>0
- <p>Why not waive it entirely for 1st homebuyers? The Victorian government makes enough from property transactions as it is. Stamp Duty premiums have only reduced marginally over the last 10-20 years, while median house prices have risen significantly. Also, the residential building sector needs support (like NSW) to help raise it out of the doldrums.</p>0
- <p>All states would benfit from a stamp duty reduction!!!!</p>0
- <p>Gill, you are spot on, the GST is broken and was from day one, small business people became tax collectors</p>0
- <p>All I can say is about time, stamp duty was suppose to disappear with the introduction of GST.... Why cannot it be the same for all states???????????????</p>0
