Upcoming Stamp Duty Changes Round Up
June 13, 2017
The Victorian State Government has recently announced changes to stamp duty concessions – these changes will be taking effect from 1st July 2017.
First Home Buyers
Stamp duty will be scrapped for First Home buyers purchasing properties valued under $600,000, and discounted on a sliding scale for properties valued between $600,000 and $750,000. This concession will apply to new and pre-existing homes.
These measures are being implemented to tackle the first home buyers housing affordability crisis, with many finding it increasingly difficult to break into Melbourne’s property market.
“With negative gearing and capital gains tax concessions, the odds are already stacked against first home buyers. This will help level the playing field.” Premier Daniel Andrews
Additionally, the Andrews government announced it would double the first-home owners' grant to $20,000 for houses purchased in regional Victoria from 1st July 2017
Changes to Investors Stamp Duty
From 1st July 2017, stamp duty concessions will no longer be available to investors on new, off-the-plan property purchases – this means Stamp Duty increases for those purchasing off the plan will increase substantially.
Previously, investors purchasing off-the-plan were generally eligible for significant stamp duty concessions. These concessions will cease for any property transactions contracted after 30th June 2017.
For investors currently looking to purchase, this could mean they will need to seek a lower cost property once they factor in the full stamp duty payable from this date forward.
What about those upgrading their current home?
The good news is that those who are not first home buyers, looking to buy their next home to live in (as your primary home), are still eligible for a concession on stamp duty, as long as you intend to live in the property for a continuous period of 12 months from settlement. This is available on properties up to $550k.
The information on this site is of a general nature. It does not take your specific needs or circumstances into consideration, so you should consider your own financial position, objectives and requirements and seek personalised advice before making any financial decisions.