SRO – Stamp Duty Changes

Several changes have been announced to stamp duty with the intention of increasing affordability for first home buyers.

First Home Buyers: Stamp duty will be removed from purchases of homes valued under $600,000 for first home buyers. There will be a concessional rate of duty (on a sliding scale) for purchases of homes valued between $600,000 and $750,000.

Subject to the passage of the State Taxation Acts Amendment Bill 2017, the new measures will apply for contracts entered into from 1 July 2017.

Limitation of Off the Plan Concessions: Concessional rates of stamp duty payable under off the plan contracts will now only apply to individuals who live in the property as their principal place of residence.
Vacant Residential Property Tax: An annual tax on vacant property will be charged at the rate of 1% on the capital improved value of the property. Exemptions will apply to holiday homes and homes owned by owners who are temporarily overseas or by deceased estates.

FHOG for Regional Victoria: FHOG for first home buyers who purchase a property in regional Victoria will double from $10,000 to $20,000 on properties valued up to $750,000.
This will apply for contracts signed from 1 July 2017 to 30 June 2020.

Further details can be found at www.sro.vic.gov.au/fhogchanges

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