Under the Allan Labor Government buyers of multimillion dollar penthouses are set to enjoy stamp duty savings equivalent to almost two median priced Melbourne homes, while Victorian first homebuyers get no relief.
In October, the Allan Labor Government announced an uncapped and unrestricted 12-month reduction to stamp duty for all off-the-plan apartments and units.
The temporary change, which excludes free-standing family homes, will not benefit anyone who is not in a position to buy in the short term and will do nothing to attract critical investment to the state in the longer term.
Meanwhile, buyers of premium properties, such as those listed for sale inSouthbank, Toorak and Melbourne CBD, will each avoid up to $1.5 million in stamp duty – nearly two times greater than a median priced Melbourne home.
Since 2014, 29 of the 56 new or increased taxes and charges introduced by the Labor Government have been property-based, driving Victoria's property taxes to the highest level in the nation and undermining confidence in the residential construction sector.
Despite property taxes now accounting for almost half of Victoria's budget revenue, Labor's net debt is set to reach a record $187.8 billion by 2027-28, with interest repayments to exceed $1 million per hour.
Leader of the Opposition, John Pesutto, said: "Premier Jacinta Allan has badly let down young Victorians and families with a stamp duty change which only benefits the wealthy, those in a position to buy now and housing projects already underway.
"If Labor were serious about improving housing affordability, they would make meaningful and lasting cuts to their highest-in-the-nation property taxes and ensure they were properly targeted to first homebuyers.
"Under this change, a first homebuyer purchasing a median priced house is no better off, but an overseas resident purchasing a $23 million penthouse will save $1.475 million – how is that fair?"
Shadow Treasurer, Brad Rowswell, said: "Million-dollar stamp duty savings on multimillion-dollar penthouses is not going to bring more housing stock online or make it more affordable for young people to buy their own home.
"Instead of giving welfare to multi-millionaires, the Allan Labor Government should be reforming property taxes to get more young Victorians into homes.
"Labor cannot manage money, cannot manage housing and Victorians are paying the price."
