In Business

Victoria Treasurer Kim Wells

Coalition Government Delivers The Keys For Home Buyers

Victor P Taffa

The Victorian Coalition Government is delivering on its commitment to make purchasing a new home more affordable for first home buyers, young farmers, pensioners and concession card holders, and self funded retirees.

Treasurer Kim Wells today confirmed that for contracts settled from 1 July the Coalition Government will cut stamp duty by 20 % for eligible home buyers and will progressively increase this cut to 30 % from 1 January 2013, 40 % from 1 January 2014 and 50 % by September 2014.

Mr. Wells said the Coalition Government is delivering the keys for first home buyers who have been increasingly priced out of the home buyers market over recent years due to increasing property prices and cost of living pressures.

 

 

“The Coalition Government understands how long it takes to save up for your first home and that massive stamp duty taxes are often the difference between the excitement of making a successful bid and the disappointment of being locked out of the property market.” Mr. Wells said.

First Home Owner Grant And Bonus Retained

“The Coalition Government will also continue the existing First Home Owner Grant and Bonuses for new homes.” Mr. Wells said.

Eligible first home buyers, purchasing homes worth up to $600,000, will be eligible for $13, 000 if they purchase a new home in metropolitan Melbourne, and $19,500 if they purchase a new home in regional Victoria.

This is in addition to the $7,000 available under the First Home Owner Grant for homes worth up to $750,000.

Mr. Wells said that by retaining the First Home Owner Grant and Bonus, more Victorian’s will be able to own their first home sooner.

Stamp Duty Exemption For First Farm Buyers Under 35

Mr. Wells said the Coalition is also delivering stamp duty assistance for young farmers buying their first farm.

“The Coalition Government actively encourages Victoria’s young men and women to pursue a career in food and fibre production.” Mr. Wells said.

“For contracts entered into from 1 July, young farmers aged under 35 who buy their first farmland property valued up to $300,000 will be exempt from paying stamp duty.” Mr. Wells said.

Young farmers will also be entitled to a concession for farmland properties valued between $300,000 and $400,000.

Improving Housing Affordability For Pensioners, Concession Cardholders And Self Funded Retirees

Mr. Wells said the Coalition Government recognises the difficulty pensioners, concession cardholders and self-funded retirees face when purchasing a suitable property, especially when they may wish to downsize to a smaller home, yet cannot afford the stamp duty costs.

“The Coalition Government will increase the pensioners and concession cardholders stamp duty concession threshold from $440,000 to $750,000 for contracts entered into from1 July 2011.” Mr. Wells said.

Pensioners and concession cardholders will be entitled to:

  • A full exemption for properties valued up to $330,000
  • A concession will be available for properties valued between $330,000 and $750,000.

Currently pensioners buying property valued above $440,000 receive no benefit at all.

“For the first time, self funded retirees who hold a Commonwealth Seniors Health Card will also be eligible for these concessions.” Mr. Wells said.

Property Cost*

Present Stamp Duty (Principal Place of Residence)

20% Cut – Pay

30% Cut – Pay

40% Cut – Pay

50% Cut – Pay

20% Cut – Saving

30% Cut – Saving

40% Cut – Saving

50% Cut – Saving

$150 000

$3 870

$3 096

$2 709

$2 322

$1 935

$774

$1 161

$1 548

$1 935

$200 000

$6 370

$5 096

$4 459

$3 822

$3 185

$1 274

$1 911

$2 548

$3 185

$250 000

$8 870

$7 096

$6 209

$5 322

$4 435

$1 774

$2 661

$3 548

$4 435

$300 000

$11 370

$9 096

$7 959

$6 822

$5 685

$2 274

$3 411

$4 548

$5 685

$350 000

$13 870

$11 096

$9 709

$8 322

$6 935

$2 774

$4 161

$5 548

$6 935

$400 000

$16 370

$13 096

$11 459

$9 822

$8 185

$3 274

$4 911

$6 548

$8 185

$450 000

$18 970

$15 176

$13 279

$11 382

$9 485

$3 794

$5 691

$7 588

$9 485

$500 000

$21 970

$17 576

$15 379

$13 182

$10 985

$4 394

$6 591

$8 788

$10 985

$550 000

$24 970

$19 976

$17 479

$14 982

$12 485

$4 994

$7 491

$9 988

$12 485

$565 000

$28 970

$23 176

$20 279

$17 382

$14 485

$5 794

$8 691

$11 588

$14 485

$600 000

$31 070

$24 856

$21 749

$18 642

$15 535

$6 214

$9 321

$12 428

$15 535

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