The Victorian Opposition's proposal to increase the stamp duty exemption threshold to include dwellings valued up to $1 million-encompassing both new and existing homes-is a housing supply 'heart starter' and is warmly welcomed by the property industry.
Cath Evans, Victorian Executive Director of the Property Council said the expanded first home buyer concessions proposed by the Opposition would help open up access to housing for many more potential Victorian homebuyers.
"Stamp duty has always been the worst property tax of the lot," Ms Evans said.
"Stamp duty acts as a tax on people's aspirations, and current stamp duty exemption thresholds have not kept pace with the increase in average housing property prices.
"Currently, up to 43 per cent of the cost of a new home goes to government taxes and charges. With soaring house prices, these figures are unsustainable for Victorians, especially as our population continues to grow.
"We're pleased today to see the Opposition's commitment to reducing this tax take for Victorian first home buyers should they be elected next year. This would remove a key obstacle to people's ability to enter the housing market and sends a shot of confidence to the industry when it's much needed.
"In the lead-up to next year's election, we urge all political parties to keep a strong focus on housing supply solutions, including addressing other complex property taxes, speeding up local planning and delivering new infrastructure to unlock land for new homes."
Currently, first-home buyers in Victoria are eligible for a full stamp duty exemption on properties valued at $600,000 or less, and a concessional rate for properties valued up to $750,000. The recent state budget also extended the stamp duty concession for off-the-plan apartments, units, and townhouses until October 2026.
The Opposition's pledge aims to broaden the scope of stamp duty exemptions, potentially easing the financial burden on up to 17,000 exemptions in its first full year.
