The Victorian Government has announced that it will be reducing Stamp Duty for property purchases in an attempt to make home ownership more affordable, particularly for first home buyers.
This comes as a bonus on the allowances currently in force and should mean savings for anyone looking to purchase property with a value of A$350,000 or less.
The existing concession for “Off Plan” purchases continues, with significant savings of stamp duty when the purchase contract is signed prior to or during the construction period.
Victoria remains the only state to offer this concession, with all other states charging duty on the full purchase price.
Pressure is mounting on all State Governments to continue to reduce the cost of stamp duty as their collections have risen significantly due to the rising values over the past 10 years.
At the moment, only small tinkering around the edges is evident, but hopefully we will see some dramatic reductions in time to come. I won’t hold my breath, but you have to live in hope!
