Buyers OK with new stamp duty deadline

Victorian government plans to cut 60 days from the time given to pay stamp duty shouldn’t be a problem for most home buyers, the Real Estate Institute of Victoria has claimed.

The proposal, which the REIV said is supported by both the government and opposition, will require stamp duty to be paid within 30 days of settlement, down from the current 90 days.

Assuming the law is passed, it will apply to contracts settled on or after 1 April 2012.

“This change is not expected to affect many home buyers, as the vast majority – 85 per cent – already pay within 30 days,” the REIV said, in a statement posted on its website.

The REIV added though that most home buyers focus on the amount of stamp duty to be paid, rather than when it needs to be paid.

“Given that Victoria is second only to the Northern Territory when ranked by its reliance on stamp duty, and the fact that at almost every price point Victoria’s is the highest, the focus on the cost is an understandable one,” it said.

The REIV said the change would have a minor impact on Victorian government finances.

“This change will have a small and temporary fiscal benefit for the state government as it will ‘bring forward’ income it expects to receive in the 2012–2013 financial year into the current one.”

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