A number of changes were announced in the Victorian state budget that will impact those that buy or own property in Victoria.
The strong property market in Melbourne is expected to continue with the budget revealing the government expects to collect $6.2 billion in property stamp duty and 2.4 billion in land tax for the 2017-18 financial year.
Here's a brief summary of the changes announced this week...
First Home Buyers
- Removal of land transfer stamp duty for first home buyers on properties up to $600,000 and further cuts for those up to $750,000.
- Doubling of the Regional First Home Owners Grant to $20,000
Investors / Home Owners
- Removal of the stamp duty concession for investors purchasing property off the plan from 1 July 2017
- Removal of stamp duty loop hole allowing spouses to transfer investment property ownership to each other for 'tax planning reasons' from 1 July 2017. Excemptions will remain for the principal place of residence and as will transfers due to relationship breakdowns.
- Introduction of a 1% Vacant Residential Property Tax on properties left unoccupied for six months or longer from 1 January 2018. Excemptions include deceased estates, renovations and holiday homes.
- Land tax to be calculated annually rather than bi-annually from 2019
More information on these changes is available on the State Revenue Office website.
To find out more how these changes may affect your own situation, call us today on 03 9432 6070 or contact us online at the top of this page.