Victorian Government Halves Stamp Duty on New Properties
Stamp duty costs have been discounted by up to 50% for off-the-plan properties and new builds.
The Victorian Government has announced stamp duty savings of 50% across new builds and off-the-plan apartments valued up to one million dollars. All homebuyers are eligible for the new stamp duty discounts, available until the end of the 2020-21 financial year. And with the Federal Government’s HomeBuilder Boost still available until the end of 2020 — there’s plenty of reasons to start your home-buying journey today.
The stamp duty discount has been welcomed by many Victorian homebuyers, with the state having the highest stamp duty costs in the nation. Often one of the biggest costs associated with buying a home (apart from the property price itself), the stamp duty discounts can result in savings of up to $27,500.
Another bonus, is that this additional discount can be applied on top of stamp duty concessions already available for those purchasing off-the-plan properties.
Not only that, but the stamp duty discount on off-the-plan and new builds is double that of the concessions available on established homes under the scheme, with the Victorian Government discounting stamp duty to just 25% on existing properties.
What are the benefits of the stamp duty discount?
Depending on your purchase price, and how much stamp duty you would have otherwise paid, the savings under the scheme can be substantial - up to $27,500. It’s up to you what you do with your savings.
- Put the money towards your deposit allowing you to buy a more premium property (you’ll still be eligible as long as your purchase price is under one million dollars).
- Put the money towards a larger deposit to decrease your loan-to-value ratio - which could lower any LMI that you would have paid, and will also mean you pay less interest over the life of your loan.
- Enjoy the savings however you want; furnish your new home, go on a holiday or keep up your brunch habit.
Who is eligible for the Victorian State Government’s stamp duty discounts?
You’ll be eligible for a 50% discount on your eligible stamp duty if you:
- Enter into a contract for a new or off-the-plan property with a purchase price of under $1 million, on or after 25 November 2020 and before 1 July 2021
- Are a local first home buyer, owner occupier or investor
Foreign investors are still eligible for a discount on the base component of the stamp duty, however the full 8% additional foreign purchaser duty still applies.
Those purchasing established property are also eligible for a discount of 25% on stamp duty.
How do I apply?
Your conveyancer or solicitor will apply for any stamp duty concessions or discounts on your behalf, as well as any additional government incentives you may be eligible for. Find out more.
For more information about the recent stamp duty changes visit the SRO website.