stamp duty reform

Will Victoria follow NSW stamp duty cuts?

The move by the New South Wales Government to cut stamp duty for first home buyers has put extra pressure on the Victorian Government to make similar moves on this side of the Murray River.

The Premier of NSW, Gladys Berejiklian, announced new measures this week which are designed to assist first home buyers as well as the construction industry in its efforts to recover from the impact of Covid-19, and come on top of the Federal Government’s HomeBuilder package.

The latest measures by our northern neighbours include:

  • Lifting the stamp duty threshold for first home buyers buying a newly constructed home from $650,000 to $800,000; and
  • Lifting the stamp duty threshold on vacant land from $350,000 to $400,000.

One key ingredient of these new rules is that these changes will only apply to newly constructed homes and vacant land, not to existing homes. Ms Berejklian also said that the changes will only apply for a twelve-month period, starting from August 2020.

The new stamp duty rates will mean that first home buyers in NSW purchasing a new house and land package could save up to $31,000, whilst purchasers of vacant land could enjoy savings of over $7,700. These new measures are over and above the NSW First Home Owner Grant, which provides $10,000 in assistance to people buying a new first home up $600,000, or buying land and building a new first home with a combined value of up to $750,000.

For those of us in Victoria, the important question is whether our own State Government will proceed down a similar path for local market entrants. We’ll keep a watchful eye on Spring Street in coming months.

In the meantime, if you need help in finding your ideal new home, or assistance in selling your current home in the current climate, be sure to contact the team at Ian Reid Vendor Advocates. You can call us any time on 9430 0000 to discuss your options.

Of course, you’ll also find a wealth of helpful tips in our free booklet, “Fatal Real Estate Traps Exposed”.