In a significant policy announcement ahead of next year’s state election, the Victorian Liberals and Nationals revealed plans to abolish stamp duty for first-home buyers purchasing properties valued up to $1 million. This proposal, introduced by Opposition Leader Brad Battin and Shadow Treasurer James Newbury, aims to assist over 17,000 prospective homeowners in its inaugural year, according to estimates from the Parliamentary Budget Office.
Battin described this initiative as a “common-sense reform” necessary for revitalising confidence in the state’s economy, claiming that the Labour government’s current taxation policies have negatively impacted property confidence. He argued that the focus should shift to growth rather than merely increasing taxes.
Newbury echoed these sentiments, noting that the policy provides crucial support for first-home buyers who are often caught in a challenging rental market. He remarked that for many young Victorians, the dream of owning a home has become increasingly challenging, with the current stamp duty system seemingly stacked against them.
Currently, buyers of a $750,000 property would typically face up to $40,000 in upfront stamp duty costs. In contrast, the Liberals’ plan aims to alleviate this financial burden, allowing more first-home buyers to enter the property market. In a similar vein, the Allan Government recently introduced a 12-month stamp duty concession for off-the-plan apartments, units, and townhouses, which is available for homes at any price point, not limited to first-time buyers. This concession is projected to save buyers an average of $25,000 in its first year.
Overall, the proposed stamp duty elimination represents a major strategy to support aspiring homeowners in Victoria and stimulate the housing market by making home ownership more attainable for younger residents.