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The Liberals and Nationals would abolish stamp duty for first home buyers on properties worth up to $1 million.
Shadow treasurer James Newbury announced the initiative in the state government’s budget in reply.
“This is a bold, common-sense reform that backs aspiration, rewards hard work, and helps young Victorians break into the housing market,” said Victorian opposition leader Brad Battin.
In its first year, the Liberals anticipate over 17,000 exemptions, if the plan comes into effect.
Newbury commented: “This policy is about rewarding aspiration. It’s about giving young Victorians a fair go.
"For too many young Victorians, the first home dream has become a nightmare. This policy is about giving aspirational first home buyers the final leg up they need. This policy is about backing in renters that have been stuck in the rental market not by their own choice, but by a tax system that is stacked against them.”
Since the announcement, industry bodies have weighed in. The Property Council of Australia said the proposal was a “heart starter”.
“Stamp duty has always been the worst property tax of the lot. Stamp duty acts as a tax on people’s aspirations, and current stamp duty exemption thresholds have not kept pace with the increase in average housing property prices,” said Victorian executive director of the Property Council, Cath Evans.
“Currently, up to 43 per cent of the cost of a new home goes to government taxes and charges. With soaring house prices, these figures are unsustainable for Victorians, especially as our population continues to grow.”
The Real Estate Institute of Victoria (REIV) also welcomed the pledge, noting the reform was “overdue”.
REIV said stamp duty is often seen as a “lazy tax” that places unnecessary strain on first home buyers.
“Currently, stamp duty on a median-priced home in Victoria consumes nearly half the average annual income, representing a clear barrier to ownership that penalises aspiration and discourages economic activity,” said REIV.
The Liberals and Nationals are getting policy pledges in early in anticipation for the state election, slated for 28 November 2026.
This article was originally featured in REB's sister brand Broker Daily.
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