The Victorian government has announced an extension of the stamp duty exemption for residents purchasing off-the-plan properties. Initially set for 12 months starting from October of the previous year, Premier Jacinta Allan has revealed that this concession will continue for an additional year.
Allan highlighted the impact of this initiative, stating that it has averaged savings of around $25,000 for buyers. The government is committed to increasing home construction and providing opportunities for future generations. This $61 million measure is part of the housing budget that will be disclosed in the upcoming state budget.
The funding will support two new precinct developments in Melbourne’s south-east and west, allocating $12.1 million for family homes in outer suburbs and $24 million for 50 activity centres along public transport routes.
However, the government is facing criticism from the opposition, which accuses the Labor Party of a “tax addiction.” The Liberal Party has called for the cancellation of a planned increase to the congestion levy on car parks, arguing that such a tax could deter visitors to Melbourne during a cost-of-living crisis, significantly impacting residents.
Additionally, the government is grappling with efforts to double the fire services levy, which could result in a $2 billion shortfall in the upcoming budget if not approved by Parliament. While Labor claims to be engaged in constructive talks concerning this issue, the shadow treasurer has urged crossbenchers to resist supporting the government’s proposal.
In summary, while the stamp duty exemption extension aims to alleviate housing costs and foster further development, the government is navigating significant challenges and opposition regarding its overall taxation strategy and budget proposals.