Stamp duty in Victoria will be temporarily slashed for all units, townhouses and apartments bought off-the-plan in the latest push to soothe the state’s housing crisis.
The Allan government’s 12-month new policy hopes to save prospective buyers tens of thousands of dollars and attract developers.
Currently, stamp duty concessions are available to first-home buyers and off-the-plan buyers who purchase homes under a certain price threshold.
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But under the Allan government’s new stimulus plan, the concessions will extend to buyers and developers at any price point for the next 12 months, effective immediately.
For a new $620,000 apartment bought off-the-plan, the government estimates stamp duty would be curtailed to $4000, offering a saving of $28,000.
“Melbourne is Australia’s biggest city and we’ve got to provide more opportunities, particularly for those under the age of 40, to be able to get the chance that other generations …have had in the past,” Allan said.
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“We know for decade upon decade too many politicians have run away from this challenge.”
Opposition leader John Pesutto publicly slammed what he called a ”token” policy.
“Premier Allan, in her vision for Victoria, you don’t get a voice and you don’t get a choice. It’s apartments for everyone,” Pesutto said.
Meanwhile, the housing industry is pleased with the policy, but believes the window to cash in on the deal should be widened.
“We’re concerned a year is too short a time frame.. for more property to come to market in that period,” Property Council of Australia Victorian boss Cath Evans said.
The state’s piggy bank currently receives about $8 billion from stamp duty.
Treasurer Tim Pallas said the new policy is expected to extract $55 million from that over the next year.
It’s the second major housing announcement by the Allan government in as many days.
Yesterday residents in Brighton staged a protest after the government announced a plan to build new high-rise apartments in 50 suburban hubs next to trains and trams.
The premier said the government would consult with residents who believe high rises will spoil their suburbs.
“I want to fight for everyone who is sick of having the goalpost shifted .. fight for those younger Victorians who need a government fighting for them,” Allan said.
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