The Victorian Premier, Mr Daniel Andrews, has announced that stamp duty will be abolished for first home buyers for purchases below $600,000. For those buying a home valued between $600,000 and $750,000, a concession will be applied on a sliding scale. The new rules apply to both new and established homes.
The Victorian Government will also remove off-the-plan stamp duty concessions on investment properties; the off-the-plan stamp duty concession will now be available solely for those who intend to live in the property or who are eligible for the first home buyer stamp duty concession.
At the same time, a vacant residential property tax will be introduced. This will be levied at 1%, multiplied by the capital improved value of the taxable property. For example, if the property has a capital improved value of $500,000, the amount paid will be $5,000. There will be a number of exemptions, including for holiday homes, deceased estates and homes owned by Victorians who are temporarily overseas.