Stamp duty savings, first home buyer grants, land tax reprieves and a $6 billion injection into the development of a build-to-rent sector are among the ways the Andrews government aims to stimulate Victoria’s property sector.
In the handing down of the state budget today, the government has revealed a number of measures designed to boost the housing market.
Conceding “2020 has been tough”, Victorian Treasurer Tim Pallas said this year’s budget is about “looking after people”.
It’s also about “building a strong recovery – and an even stronger future for our state”, he continued.
Below are the property sector highlights:
According to the government, it will be providing tax relief on stamp duty for residential property transactions of up to $1 million. This will include a waiver of 50 per cent for new residential properties, and 25 per cent for existing residential properties for contracts entered into between 25 November 2020 and 30 June 2021.
In a bid to support regional businesses to open, relocate and expand, the government is also planning to deliver a 50 per cent stamp duty concession on the purchase of commercial and industrial properties from January 2021.
According to budget documents, the Victorian Homebuyer Fund will also provide $500 million to accelerate Victorians into home ownership, with the fund to contribute to the purchase price in exchange for a proportionate equity interest in the property.
This fund will support the purchase of both established and newly built homes, and will reduce the size of the deposit required.
The $20,000 first home owner grant will also be extended for anyone buying or building a new home in Victoria – to 30 June 2021, with budget papers outlining that “this extension gives more Victorians the opportunity to live locally and enter the property market for the first time, while also supporting jobs in regional Victoria”.
Land tax and ‘Victoria’s Big Housing Build’
In a bid to increase housing supply and provide renters with more options, the state government has indicated it will be establishing the build-to-rent sector in Victoria with a $6 billion investment.
From 1 January 2022, Victoria’s Big Housing Build will provide a 50 per cent land tax discount for eligible new development until 2040, while also providing exemptions from the absentee owner surcharge.
The Big Housing Build scheme will see $5.3 billion invested into the construction of 12,000 new and affordable homes, including:
- 9,300 new social housing dwellings replacing 1,100 old housing units
- 2,900 affordable homes in locations close to jobs and transport.
Planning system reforms
The state government has also revealed a cash injection into implementing the Commissioner for Better Regulation’s planning reforms and to grow housing supply across the state.
More to come.