On Tuesday 24th of November, the Victorian State Government Budget announced that all contracts for residential property purchases up to $1 million entered into between 24 November and 30 June 2021 will be eligible for stamp duty savings.
- A 50% stamp duty waiver will apply to new residential property purchases up to $1 million. This will save purchasers up to $27,500.
- A 25% stamp duty waiver will apply to existing residential property purchases up to $1 million. This will save purchasers up to $13,750.
These savings are not limited to first home buyers and are not means tested. This is likely to encourage investors looking to residential property for returns as an alternative to low interest on deposits.
The stamp duty savings, together with the Victorian Homebuyer Fund may allow first home buyers to enter the market years earlier than they expected. See our recent blog on the topic for further details.
Developers looking to bring off the plan developments to market should push to have contracts available for execution before 30 June 2021 and market the stamp duty savings to prospective purchasers.
If you have any questions about any of the above matters, please get in touch with your Morrows advisor or Adam Neylon (03 9134 3543) of Morrows Legal.