Major changes to Stamp Duty and Property in Victoria

Victorian Government announce major changes to stamp duty and property transactions

Model house and financial information

The Victorian Government’s latest budget has introduced major changes to stamp duty and grants affecting properties in Victoria. There are great opportunities for first home buyers to take advantage of after 1st July, 2017 but investors need to be wary of changes, particularly to do with spouse transfers and off the plan purchases.

First Home Buyers – Stamp Duty

There will be no Stamp Duty for first home buyers purchasing a property up to $600,000 and a duty concession for first home buyers for purchases between $600,001 and $750,000. This will apply to contracts signed after 1st July, 2017.
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First Home Buyers Regional Grant

A grant of $20,000 will be available for homes built in regional Victoria. This will apply to contracts signed after 1st July, 2017 and before 20th June 2020.
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Off the Plan Concession

From 1st July 2017, the Off the Plan stamp duty concession will only apply to buyers who intend to occupy the property as their principal place of residence and not for investors.
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Transfers between spouses

From 1st July 2017 to 30th June 2020, property transfers between spouses and de facto partners involving commercial and investment properties will no longer be exempt from stamp duty.
This is a major change to the legislation and will greatly affect investors.

Australian Defence Force FHOG

A minor change is that members of the Australian Defence Force no longer have to live in the property they purchase to receive the First Home Owners Grant of $10,000 or $20,000 for a regional property.
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Vacant property tax

A vacant residential property tax will be applied to some properties in Melbourne if the property is vacant for more than 6 months of the year.
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If you believe any of theses soon to be introduced measures above may affect you then please contact our office as soon as possible.