Let’s talk about Stamp Duty and First Home Owners Grants!
There have been some changes recently to stamp duty. Are you having trouble keeping up? Here’s everything you need to know.
Stamp Duty Discounts
On the 24th of November, 2020 the Victorian Government state budget included a series of support measures, intended to stimulate the housing market. These included $293 million towards a 50% stamp duty concession for homes valued under $1million.
To be eligible, property contracts needed to be entered into for 25 November 2020 to 30 June 2021. Newly built or “off-the-plan” homes received a 50% waiver, while existing homes were eligible for a 25% waiver.
Where We’re At Now
As of the 30th June 2021, these discounts have now come to an end.
First Home Owners
While these initiatives were concluded at 1st July 2021, discounts still apply for first home buyers. For a purchase up to $600,000 no stamp duty is payable. A discount applies for properties prices between $600,000 and $750,000, while property purchases above $750,000 are required to pay full stamp duty.
A purchase of a new property makes the buyer eligible for a $10,000 First Home Owners Grant – provided the property costs less than $750,000. The grant is separate to, and applies on top of stamp duty concessions.
Regional First Home Owners
Since July 1st, 2021 the regional homeowner's grant, which was $20,000 has been reduced to $10,000.
Victorian Homebuyer fund (VHF)
The newly launched Victorian Homebuyer fund (VHF) is expected to support more than 3,000 Victorians to become homeowners. The VHF aims to make it easier for people to buy a home through a system of shared equity that reduces the amount of money eligible participants need to enter the market.
Under the new scheme, there’s no need to be a first home buyer. The VHF will be available to Australian citizens or permanent residents over the age of 18 years, who don‘t currently have an interest in a property and who meet the income thresholds -which are annual gross incomes of $125,000 or less per annum for individuals, or $200,000 or less per annum for joint applicants.
Eligible participants will be able to purchase in any location in Metropolitan Melbourne, but will also be provided a broad range of regional options.
The value of the property cannot exceed $950,000 in Metropolitan Melbourne and Geelong. The price cap in Regional Victoria (excluding Geelong) is $600,000.
Still Stuck?
If you’re still unsure about what stamp duty you’ll be required to pay, use this stamp duty calculator by the Victorian State Revenues Office. A member of the team at Barry Plant Ballarat would be happy to answer your questions. If you’d like get in contact, drop in anytime to 806 Sturt St, Ballarat, give us a ring on 03 5320 9300. We want to be a team you can count on – so at Barry Plant we strive to make working with us, feel like home.
Further Information for Landlords and Tenants:
It’s important for Landlords and Tenants to understand the difference between Urgent and Non-Urgent Repairs. Check out our blog post to learn more. https://www.barryplant.com.au/offices/ballarat/media-hub/blog/urgent-and-non-urgent-repairs/
Disclosure Statements are an important step for renting your properties. If you’re a landlord looking for information about Disclosure Statements see our blog post and radio interview.
Read this article for a summary of how the regional rental market is performing.
https://www.barryplant.com.au/offices/ballarat/media-hub/news/how-regional-rental-market-performing/