Buyers anticipate greater savings after tax removal,
The removal of stamp duty in Victoria for off-the-plan buyers is seen as an initial step to relieve a tax burden.
According to a property peak body, this tax has been hindering the state’s housing market, limiting growth and investment opportunities.
Today, the Victorian state government announced that the controversial tax will no longer apply to off-the-plan properties.
Importantly, there will be no price cap on these transactions, allowing for greater flexibility in purchasing options.
Premier Jacinta Allan revealed the amendment, which applies to buyers from various backgrounds purchasing homes in the planning stage.
Previously, only first-home buyers benefited from stamp duty relief, creating an imbalance in the market.
Kelly Ryan, CEO of the Real Estate Institute of Victoria, stated that stamp duty is a “burdensome tax.”
The institute has long advocated against this tax, emphasizing the need for comprehensive reform.
Furthermore, the REIV is pushing for deeper reforms related to stamp duty beyond this initial change.
Ryan noted that removing stamp duty for off-the-plan properties will stimulate activity among developers and investors, increasing housing density.
“We appreciate the Allan Government’s introduction of tax concession measures aimed at encouraging private investment in Victoria’s housing market,” Ryan stated.
While this is a positive first step, there is hope that these concessions will stimulate the development of higher-density homes.
Moreover, these changes should establish a clearer pathway for broader stamp duty reform across the state, benefiting many buyers.
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“The REIV has consistently advocated for tax reforms. This includes a comprehensive review of stamp duty, which is a burdensome tax.”
They argue that this tax restricts investment opportunities and mobility within Victoria’s property market, creating challenges for potential buyers.
Furthermore, density seems to be a controversial term for those opposed to the Allan government’s housing strategy.
At a recent press event in Brighton, the premier faced heckling from locals as she announced new developments.
She revealed the bayside areas that will become part of the 50 new activity centers across the city.
These centers are set to be zoned for faster high-rise apartment development, aimed at addressing housing needs.
