Land transfer (stamp) duty Changes (Nov 2020)
- Bringing forward the 50% land transfer (stamp) duty concession for commercial and industrial properties in regional Victoria — applies to contracts entered into on or after 1 January 2020.
- A land transfer (stamp) duty waiver of up to 50% on purchases of residential property in Victoria with a dutiable value of up to $1 million — applies to contracts entered into on or after 25 November 2020 and before 1 July 2021.
Tax relief on stamp duty for residential property transactions of up to $1 million will also be provided. A waiver of 50% for new residential properties, and 25% for existing residential properties, will be available for purchases of up to $1 million for contracts entered into between the day after announcement and 30 June 2021.
Land tax discount
To increase the supply of housing and create more options for renters by establishing the build-to-rent sector in Victoria, from 1 January 2022, Victoria’s Big Housing Build will provide a 50% land tax discount for eligible new developments until 2040. These developments will also be exempt from the Absentee Owner Surcharge over the same period. Investment in the build-to-rent sector will stimulate construction activity, create jobs and support Victoria’s economic recovery
First Home Owner Grant
The Government has also extended the $20,000 First Home Owner Grant for people buying or building a new home in regional Victoria to apply to contracts of sale entered up until 30 June 2021. This extension gives more Victorians the opportunity to live locally and enter the property market for the first time, while also supporting jobs in regional Victoria.
NEWS SOUTH WALES
The government would phase out stamp duty on new property purchases in favour of an annual land tax. Long flagged by the NSW government, the move could inject an extra $11bn into the state’s coffers over four years.
But it will not happen at once. Rather, the treasurer said, the government would start a public consultation process on a proposal to give homebuyers the choice to opt out of paying stamp duty in favour of an annual property tax. The change would not affect current owners who are not buying or selling property, and the exemption on stamp duty for first home buyers buying a property costing less than $1m would be replaced with a $25,000 grant.
Perrottet said the change would give the state “a realistic pathway to achieving the most important state economic reform of the last half century”.
“Stamp duty is a relic from a bygone era when you picked one career, started a family, bought a home and basically settled in for life,” he said.
“It adds tens of thousands of dollars to the cost of the biggest financial commitment most people ever make. If you want to move, change jobs, or switch careers, upsize or downsize to match your family size, stamp duty can be the spanner in the works. It is holding our economy back at a time we need to be going full throttle.”