The Victorian State Treasurer Tim Pallas announced the cut in stamp duty would apply to home sales under $1 million only.
The duty will be paid at a rate of 50 per cent for new build homes and 25 per cent for existing properties, until the end of June 2021.
The discounted rate is aimed at stimulating Victoria’s housing market after coronavirus pandemic-related restrictions.
“With a waiver on stamp duty, we’ll help more Victorians find their home and get more Victorians back to work,” Treasurer Tim Pallas said.
All purchases of more than $1 million will pay the full stamp duty amount.
The budget measure was part of the government’s “Big Housing Build”.
The state government forecasts an 11 per cent peak-to-trough fall in house prices, with the lowest point being next in June.
They forecast that prices will only recover to pre-COVID-19 levels in 2022-23.
The budget papers revealed a 25 per cent drop in stamp duty revenue to $4.6 billion in the 2020-21 financial year.
“Land transfer [stamp] duty is expected to recover from 2021-2022 and grow by an average of 15.4 per cent a year, over the forward estimates, but is not expected to reach the 2018-2019 level until 2022-23,” the budget papers stated.
“It’s about equity and putting the support and effort where it can best have effect,” Pallas said.
“The aim is to get as many people in that price bracket [$1 million] and below back into the market.”
Article taken from propertyobserver.com.au written by Jonathan Chancellor