Thousands of first home buyers to save big in VIC stamp duty overhaul

First home buyers in Victoria can start clinking their champagne flutes over a new tax exemption which will save them as much as $10,995 when purchasing their first property.

Stamp duty, the tax people pay to the state when they buy property, has been scrapped for new homeowners who purchase a house for less than $600k. First homeowners buying a property within the $600k to $750 range will also benefit in the form of stamp duty tax concessions. 

According to the Mozo stamp duty calculator, first home buyers are set to save the following thanks to the changes (that will come into effect on July 1):

State Premier, Daniel Andrews, said that the changes are expected to help thousands of Victorians realise their first home dreams.

“In the past, if you worked hard and saved enough, you could afford to buy your own home. Now, that’s getting harder and harder,” he said.

“With negative gearing and capital gains tax concessions, the odds are already stacked against first home buyers. This will help level the playing field.”

Victoria’s Acting Executive Director of the Housing Industry Association, Keith Banks, welcomed the news saying the policy will provide thousands with the ability to enter the market faster than previously possible and boost the state’s residential housing industry.

For Victorians still saving for a first home deposit the state government also announced it will run a $50 million pilot scheme next year to help renters buy their first home.

The initiative will involve the state government co-purchasing around 400 properties with renters who fit a single or shared income criteria.

“This pilot scheme will make it easier for first home buyers to get their foot in the door, as well as reducing the size of the loan they’ll need to service,” said the Victorian Treasurer, Tim Pallas.

Ready to start climbing the property ladder? Shop around for the best mortgage rate here at Mozo’s home loan hub.