Abolishing stamp duty for first home buyer purchases under $600,000
Buying your first home is getting harder. House prices are rising and the upfront costs – a deposit, stamp duty and fees – can be a huge hurdle.
To help first home buyers, we’ll completely abolish stamp duty for both new and existing properties under $600,000. First home buyers purchasing a property between $600,000 and $750,000 will also receive a tapered discount.
With an average saving of around $8,000, it will give first home buyers an advantage, and more money to put towards the purchase of their home.
This measure will help more than 25,000 people each year at a time when they need it most.
It’s all about putting first home buyers on a level playing field with investors.
These savings are in addition to the existing First Home Owner Grant, and will cost an estimated $851 million over the next 4 years. These changes will apply from 1 July 2017.
Young farmers will continue to be eligible for Victoria’s unique stamp duty concession on the purchase of their first farm – a concession only available in Victoria.
This will be administered by the State Revenue Office.
First home buyers – new house
Jon and Anne are first home buyers purchasing a new two-bedroom house in the western suburbs of Melbourne for $575,000. They would have paid $14,785 in stamp duty, partly offset by their First Home Owner Grant. Under the Government’s proposal, they will pay no stamp duty at all – allowing them to put their savings towards paying off their new home.
First home buyers – existing house
Rashid and Emma are first home buyers purchasing an existing townhouse in the middle suburbs of Melbourne for $650,000. They would have paid $34,070 in stamp duty, equivalent to more than 5% of their home value. Under the Government’s proposal, their stamp duty will be reduced to $11,357 saving the couple $22,700.