Victorian agents are bracing for an increase in home buyer activity as the state government announced its plans to cut stamp duty.
Speaking about the upcoming election, the ALP and the Coalition yesterday said the state’s home buyers are paying too much stamp duty and that housing affordability continues to be a serious issue.
Liberal Leader Ted Baillieu was promising to slowly introduce new and reduced tax rates over four years, with a 20 per cent cut from July, followed by another 10 per cent each year if elected.
Real Estate Institute of Victoria (REIV) chief executive officer Enzo Raimondo welcomed the plan, saying that Victoria currently has the highest stamp duty in Australia.
“The REIV has been campaigning for cuts to stamp duty for many years and we welcome the announcement of the policies by both ALP and Coalition today,” Mr Raimondo said.
"The Coalition’s initial 20 per cent cut would take stamp duty rates (as a percentage of the sale price) back to what was being paid around 10 years ago for first home buyers.”
Mr Raimondo said the Coalition’s policy was “more generous” than Labor’s outlined plan, as the Labor plan did not target all buyers.
“The ALP’s policy does not reduce stamp duty for all home buyers but continues its policy of targeting first home builders, particularly in regional areas,” he said.
“The ALP commitment to abolish stamp duty for first home buyers of new homes in regional Victoria and continuing the bonus for new homes is welcome but the Government knows the majority of first home buyers buy established housing in the metropolitan area and so their policy that should be applied more widely,” he said.