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The Victorian government has decided to abolish stamp duty for first home buyers and this move, alongside an increase in the first home buyers grant, has been lauded by industry bodies as the first step towards amending the housing affordability crisis.
The Victorian government has announced it will abolish stamp duty for first home buyers on purchases below $600,000.
Victorian Premier Daniel Andrews has also announced that purchases of properties between $600,000 and $750,000 will receive a stamp duty concession applied on a sliding scale.
“Victoria has acted. It is time for NSW to step up and take a stand,” said REINSW president John Cunningham.
He has called on NSW Premier Gladys Berejiklian to prove her claims that housing affordability is the number one priority for her government.
“NSW is now living in the shadow of our southern counterparts. We will lose our best and brightest if we do not match or better what Victoria has pledged to introduce,” said Mr Cunningham.
“The clock is ticking and the government must act now before it is too late,” he said.
In addition to these measures, the Victorian government will establish HomesVic, a $50 million program which will co-purchase 400 homes and take an equity share of up to 25 per cent. Eligible applicants will include couples earning up to $95,000 and singles earning $75,000.
In regional Victoria the first home owners grant has been doubled; home buyers building new homes in regional Victoria will be entitled to $20,000 as of 1 July 2017.
“NSW wound up its regional home buyers schemes in March 2015. This must also be put back on the agenda,” Mr Cunningham said.
Affordability refers to a product or service that is inexpensive and accessible for people with limited means.
Housing affordability refers to the cost of housing that is relative to the disposable income of a renter or buyer.
Stamp duty is a tax imposed on the purchase of a property based on its price, location, and loan purpose.