The Victorian government has announced they will invest $1.5 billion in new tax relief for Victorian businesses and families, as part of the 2020/21 state budget.
A major part of this announcement is a stamp duty concession of up to 50 percent, for homes valued at up to $1 million.
This significant relief will be targeted at off-the-plan and newly built homes, which will receive a 50 percent waiver. The stamp duty concession of up to 50 percent for residential homes valued at up to $1 million will apply to residential property contracts, entered into from 25 November to 30 June 2021 – and will constitute over $293 million of the $1.5 billion package. Existing homes will also be eligible for a 25 percent waiver.
First home buyers buying an existing property worth $700,000 will be eligible for the new 25 percent stamp duty waiver, in addition to the first home buyer duty concession – totalling tax relief of around $18,500.
“With a waiver on stamp duty, we’ll help more Victorians find their home and get more Victorians back to work,” Treasurer Tim Pallas said. “We will encourage Victorians back into the property market, by waiving up to 50 percent of stamp duty on eligible homes, for the remainder of the financial year."
A 50 percent stamp duty concession on the purchase of commercial and industrial properties will also be brought forward to January 2021 – encouraging more businesses to open, relocate or expand in Victoria. Mr Pallas also asserts that it will help “hard-hit regional economies bounce back”. This investment is expected to save businesses around $39.6 million.
“There is no sugar-coating it, this pandemic has hit businesses hard. This support will help them open their doors, get back on their feet and employ more Victorians.”