The Victorian government has recently announced four significant changes in the way properties are taxed, that will have a significant effect on first home buyers.
- Stamp duty will be abolished for first home buyers buying a property for $600,000 or less and reduced on a sliding scale for buyers spending between $600,000 and $750,000.
- Increasing the first home buyers grant for purchasers of new homes valued at up to $750,000 and located in regional Victoria from $10,000 to $20,000.
- Retargeting the “off-the-plan” concession by making it only available for those who qualify for the Principal Place of Residence stamp duty concession or the first home buyer stamp duty exemption/concession. That is, this stamp duty concession will no longer be available to investors.
- Introducing a new tax on properties left vacant. Vacant is defined as a property left unoccupied for more than 6 months in a calendar year.
Measures 1-3 are to applied to property transactions that are contracted from 1 July 2017 onwards. Measure 4 will come into effect on 1 January 2018.
If you are unsure how these measures may affect you, feel free to call Mortgage Choice in Camberwell & Canterbury on 03 9021 6904 for a chat.