What is New Stamp Duty Victoria? Victorian premier Daniel Andrews has slashed the stamp duty for homeowners by 50 percent as the state is looking forward to stimulating the property market by 2021 and after the pandemic ends.
Victorian treasurer Tim Pallas said the decision was about building a strong recovery from the pandemic and an even stronger and stable situation in the future.
The residents of Victoria received the news. Victorians did not fare as well as their New South Wale counterparts. It happened when Gladys Berejiklian and Treasurer Dominic Perrottet announced the scrapping of stamp duty on November 18.
New Stamp Duty Victoria Up to 50 Percent
The bold measure was made to inject the economy with $11 billion over a span of four years.
For the prospective owners of houses in Victoria, the development will see a 50% reduction in the properties valued under $1 million until June 30 2021.
Victorian Government has also introduced a budget of 500 million dollars for those who cannot afford to buy a house due to a 20% house deposit, according to Pedestrian TV.
The Government are still to declare the specifics of the Homebuyer Fund, mainly who is eligible and how one can access the funds.
In NSW from 2021, the property buyers will have the option to pay stamp duty or an annual property tax which would be paying a small percentage of property value each year.
First-home buyers stand to benefit the most from choosing the property tax, with the Government planning to offer grants of $25,000 to replace existing concessions from stamp duty.
They can then choose not to pay the stamp duty which would be $29k on a $750,000 home. Instead of paying the stamp duty, one can pay the annual tax, which would be nearly $1,812 per year on average.
This means the buyer will have $54k more than those who have to pay for stamp duty at the purchase of the property.
‘Stamp duty is a relic of a bygone era when you picked one career, started a family, bought a home and settled in for life,’ NSW Treasurer Mr Perrottet said after announcing the budget.
First home buyers in NSW are currently away from stamp duty if their home is worth less than $650,000.
New Stamp Duty Victoria has made life easy for those who wangt to buy property and this way the government is trying to generate a decent revenue as well in a convinient way.