Those buying existing homes will receive a 25 per cent discount on stamp duty, up to the same value.
The emergency tax relief will apply to contracts entered into from Wednesday, the budget papers stated, as part of the government’s “Big Housing Build”.
Victorian Treasurer Tim Pallas said the discounts would entice people back into the property market, which had taken a major hit during the COVID-19 pandemic.
“It’s about equity and putting the support and effort where it can best have effect,” he said. “The aim is to get as many people in that price bracket [$1 million] and below back into the market.”
The stamp duty discount was not the only housing-related tax to be reduced: a 50 per cent land tax discount for build-to-rent developments was also announced as part of the budget.
Discounts will include an exemption from the absentee owner surcharge and will be introduced from 1 January 2022 and be in place until 2040.
In his speech to Parliament, Mr Pallas estimated this would add an extra 5,000 homes for renters.
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