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Good news for Victorians!
Tax relief for Victorian homebuyers has been unveiled in Tuesday’s state budget, which applies to Victorians who buy a new home before next July.
You will receive a waiver of 50% on stamp duty if you purchase a new home, and 25% if you buy an existing home.
The period of contract must be between today, 25 November and 30 June next year under the tax relief plan.
This is considered as a support at attracting Victorians back into the property market after a terrible year in which the state economy has been damaged by the effect of the pandemic and summer bushfires.
The state government is also predicting an 11 per cent peak-to-trough fall in house prices, forecasting the lowest point would be in June 2021. They have forecast that prices will not recover to pre-COVID-19 levels until 2022-23.
“It’s about equity and putting the support and effort where it can best have effect,” Victorian Treasurer Tim Pallas said. “The aim is to get as many people in that price bracket [$1 million] and below back into the market.”
The stamp duty discount was not only for housing-related tax but also included a reduction of 50% land tax for build-to-rent (BTR) developments.
Discounts will include an exemption from the Absentee Owner Surcharge and will be introduced from January 1, 2022 and be in place until 2040. In his speech to Parliament, Mr. Palass estimated this plan will add an extra 5000 homes for renters.
Victoria’s long-awaited state budget revealed the impact of the coronavirus pandemic on the state’s economy, with the operating deficit growing from $6.5 billion to a projected $23.3 billion due to the coronavirus crisis.
Total revenue is down by 4.2 per cent and tax revenue is down by 11.3 per cent as the state economy recovers from the strict stage four lockdown.
Funds have also been set aside to deliver an extra 42,000 home solar rebates and more batteries. The $191 million cash splash also include solar rebates for small businesses for the first time.
Many in the industry, including the Property Council of Australia, had high hopes that the Victorian government would introduce a stamp duty scheme that is similar to the NSW one, to boost the property market.
If you are not sure if you are eligible for or are feeling confused, then get in touch. Fundwise Capital Team is well in understanding what those new plans actually mean and how they are helpful for your mortgage loan, and we can guide you through.
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