Duty would be removed from first-home buyer properties up to $1m
The Victorian Liberals and Nationals opposition has promised to abolish stamp duty for first-home buyers on properties valued up to $1 million.
Revealed ahead the opposition’s Budget Reply Speech, Shadow Treasurer James Newbury framed stamp duty as one of the biggest barriers to entering the property market.
"This policy is about rewarding aspiration. It's about giving young Victorians a fair go," Newbury said. "Labor has introduced 61 new or increased taxes in 10 years – 30 of them on property. We say enough is enough.
“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.”
Under the proposal, first-time buyers purchasing an established or off-the-plan property under $1 million would be fully exempt from stamp duty – a levy that currently adds as much as $40,000 to a $750,000 purchase.
The Parliamentary Budget Office estimates that more than 17,000 buyers could benefit in the first year alone, with savings of up to $55,000 for some.
Victorian Premier Jacinta Allan labelled the pledge a “cut and paste” of existing schemes, pointing to Victoria’s existing stamp duty exemptions for properties under $600,000 and concessions up to $750,000.
Last October, the Allan government introduced a 12-month stamp duty concession for off-the-plan apartments, units, and townhouses. As part of last week’s state budget, the concession was extended by another year, now running through to October 2026.
Speaking to reporters on Tuesday, Allan said: "What we've seen is a bit of a cut and paste from the Liberal Party of arrangements that we already have in place here in Victoria.
"There are more first home buyers in Victoria than any other state in the nation, because we have existing arrangements in place that support them, and because we are building and completing more homes than any other state."
She also questioned how the opposition intends to pay for the proposal. "You just can't announce part of the policy... they have to explain the full arrangements,” said Allan.
