This page outlines the following four Victorian Government announcements:
- New stamp duty measures for first-home buyers
- Changes to the FHOG
- Changes to off-the-plan concessions
- Tax on vacant property
New stamp duty measures for first-home buyers
The Victorian Government has announced that stamp duty (land transfer duty) will be abolished for first-home buyers purchasing a home with a dutiable value of not more than $600,000.
This will make the existing first-home buyer 50 per cent duty reduction that applies to the purchase of a home with a dutiable value of not more than $600,000 a full exemption.
Further, duty will be phased-in for eligible first-home buyers who purchase a home with a dutiable value between $600,001 and $750,000.
Subject to the passage of the State Taxation Acts Amendment Bill 2017, the new measures will apply for contracts entered into from 1 July 2017.
First Home Owner Grant changes for regional Victoria
This will apply for contracts signed from 1 July 2017 to 30 June 2020.
Eligible first-home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 FHOG.
For more information about the FHOG, please check your eligibility.
Changes to the off-the-plan concession
The Victorian Government has announced that the off-the-plan concession is being retargeted and will now only apply to buyers who occupy the property as their principal place of residence (PPR).
Essentially, the off-the-plan concession will only be relevant to determining "dutiable value" for the purpose of the PPR duty concession, the new first-home buyer duty exemption or the new first-home buyer duty phase-in concession.
Subject to the passage of the State Taxation Acts Amendment Bill 2017, the change will apply for contracts entered into from 1 July 2017.
Vacant residential property
The Victorian Government has also announced it intends to introduce a Vacant Residential Property Tax (VRPT).