Stamp duty slashed for off-the-plan property purchases in Victoria

Date:

Share post:


The Victorian government has announced a significant reduction in stamp duty for off-the-plan apartments, units and townhouses in a bid to stimulate the housing market and address the state’s housing crisis.

Under the new scheme, stamp duty concessions will be expanded to all buyers of off-the-plan strata properties, removing the current cap and opening the offer to investors as well as owner-occupiers.

The amount of stamp duty paid will be calculated based on the cost of the land prior to construction, not the total price of the finished property, resulting in substantial savings for buyers.

According to the Herald Sun, a buyer purchasing an off-the-plan apartment for $620,000 with land valued at $77,500 would pay only $4,000 in stamp duty instead of $32,000, representing a $28,000 reduction.

The expanded concessions will be available for one year, starting from October 21, 2024, and ending on October 21, 2025. 

Properties currently under construction may also be eligible, depending on the stage of completion.

Premier Jacinta Allan said that the extra relief for aspiring home buyers would lead to “more homes for young people and families”.

The move comes after months of calls from the property industry to remove stamp duty for off-the-plan sales, with experts warning that the restrictive charge was deterring investment and slowing down development.

Property Council of Australia Victorian executive director Cath Evans called the extra concessions a “big step in the right direction”, and said that apartment commencements in Melbourne had declined to less than 4,000 a year.

Urban Development Institute of Australia Victorian CEO Linda Allison welcomed the expansion, and said that tax reform was the “key to reducing the cost of housing” and boosting market confidence.

The Real Estate Institute of Victoria (REIV) also supports the government’s decision, with CEO Kelly Ryan describing it as an important step toward comprehensive stamp duty reform.

“We’re pleased the Allan Government is introducing tax concession measures that seek to incentivise private investment in Victoria’s housing ecosystem,” Ms Ryan said.

The REIV hopes these concessions will stimulate the development of urgently needed higher-density homes across the state and establish a clearer pathway for broader stamp duty reform.

This announcement follows the recent expansion of the Activity Centre program, which introduced 50 new “train and tram zones” for high-density development, aimed at boosting housing supply in Victoria.

“A strong pipeline of new housing in established areas will pave the way for long-term stability in the housing market,” Ms Ryan said.



Source link

Nicole Lambert
Nicole Lambert
Nicole Lamber is a news writer for LinkDaddy News. She writes about arts, entertainment, lifestyle, and home news. Nicole has been a journalist for years and loves to write about what's going on in the world.

Recent posts

Related articles

Ray White donates 11,000 Christmas gifts

As a group, Ray White supported over 223 local charities including Ronald Mcdonald House, The Salvation Army,...

Matthew Jabs to lead Place Newmarket

The Announcement: Place Estate Agents has announced that Matthew Jabs will lead the Place Newmarket sales team as...

Mario Sultana joins Aurora Property

The Announcement: Mario Sultana and his wife Karen Elliott have rebranded to Aurora Property, marking a significant milestone...

McGrath St George South West Group expands with Sutherland Shire acquisition

The Announcement: McGrath St George South West Group principals Matthew King and Kieran Bresnahan have announced a significant...

Belle Property expands with new Whitsundays office

The Announcement: Belle Property has expanded its Queensland presence with the launch of Belle Property Whitsundays, headed by...

Nick Moloney joins Place in Brisbane’s northside

The Announcement: Place Estate Agents has welcomed Nick Moloney as Lead Agent at Place Ascot and Place Nundah...

Top 50 Australian Residential Real Estate Industry Influencers 2024

We’re thrilled to unveil this year’s list of influential leaders—individuals and organisations who we feel have made...

How I sold it: marketing re-targeting finds the perfect buyer

And sometimes the buyer group an agent predicts will fawn over a home doesn’t. It was the latter...