Proposed Victorian State Government Changes Affecting First Home Buyers

March 08, 2017
Simon Allen

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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 0439 841 539 for a chat.

Posted in: First home buyers

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