For someone who is not a first home buyer, the Land Transfer Duty on a $600,000 property would be $31,070, so the planned abolition will produce meaningful savings to those entering the property market for the first time.
This will now create a full exemption for existing first-home buyers who currently enjoy a 50 per cent duty reduction that applies to the purchase of a home with a dutiable value of not more than $600,000.
Furthermore, duty will be phased-in for eligible first-home buyers who purchase a home with a dutiable value between $600,001 and $750,000.
Unlike the First Home Owner Grant, it doesn’t matter whether you buy a new or established home; in either case the stamp duty will be abolished.
If you are buying or building a new home valued up to $750,000, you may be eligible for a First Home Owner Grant. If you are eligible for the FHOG and the home you are buying is in regional Victoria, you will receive $20,000. If the home is not in regional Victoria, the grant is $10,000. The home must be less than five years old to be eligible for the FHOG.
To be eligible for the first home buyer duty exemption or concession, your contract of sale must have been entered into on or after 1 July 2017.
You are not eligible for the concession or exemption if the contract was entered into before 1 July 2017 but the property settled after this date.
If you want to know more about this proposed change of any other property matter, contact Noel or Amanda on 9585 7555 oremail us.