Some Melbourne home buyers will pay less stamp duty until June 2021 next year

By November 26, 2020 Buying Advice

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.

New residential builds valued under $1 million will receive a 50 per cent waiver on stamp duty up to $27,500.
Buyers on existing residential properties will secure a 25 per cent saving of up to $13,750.

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 written by Jonathan Chancellor

Photo by Ralph (Ravi) Kayden on Unsplash

About The Author
Paul Kounnas

Paul Kounnas

For nearly 40 years, Paul Kounnas has been helping people buy and sell property in and around the Manningham area. In 1993 Paul established Hudson Bond Real Estate and he is recognised as one of the most respected, prominent and knowledgeable members of his profession. A licensed Real Estate Agent and member of the REIV and the International Real Estate Federation (FIABCI), Paul provides regular expert advice and information on all matters relating to real estate.

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