State budget 2017 round up
Stamp duty (land transfer duty) will be abolished for first-time buyers for a house-and-land package up to the value of $600,000. The concession rate continues on a sliding scale for houses up to $750,000, for contracts signed from July 1.
First Home Owner Grant changes for regional Victoria
The First Home Owner Grant will double to $20,000 for regional buyers, including Geelong, for new homes valued up to $750,000. This applies from July 1 until June 30, 2020. Eligible first-home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 grant.
Changes to off-the-plan concessions
Off-the-plan stamp duty concessions will only apply to buyers who occupy the property as their principal place of residence. This change will apply for contracts entered into from July 1.
- $75 million allocated for the acquisition of land for nine new school sites in growth areas
- Additional $4 billion in transport investment, adding to the $30 billion in new transport projects invested
All changes are expected to be approved by the Victorian Parliament this month
UDIA Victoria chief executive Danni Addison said the Homes for Victorians package was a three-fold flawed policy.
Firstly: “The demand for houses in Melbourne’s growth areas and established suburbs will increase but supply will not, which will drive up house prices rather than making them more affordable.”
Secondly: “A decline in investors purchasing and leasing out new housing will limit rental supply and push up prices for renters.”
And third: “If the number of investors purchasing off-the-plan properties decreases, so will the supply of new housing, pushing up costs for home buyers.”
“Taxes on property now represent approximately 45 per cent of the State Government’s taxation revenue and 15.5 per cent of its total revenue…but what is the State Government doing to reinvest that money back into the housing market?” Addison said. “It’s time the State Government started to take the growth areas seriously by spending the money on key infrastructure items, like roads and public transport, which will unlock opportunities for the people living in Melbourne’s fastest-growing communities.”