Select home buyers to be exempt from stamp duty in Victoria

Rapid Finance on 18 April 2017

  • First home buyers to get stamp duty cuts
  • Available on homes up to $750,000
  • Applicable to stamp duty in Victoria only

Stamp duty cuts could help you to buy a home

In an effort to make housing more affordable, Premier Daniel Andrews and the Victorian State Government has announced that they intend to implement stamp duty cuts for Victorians buying their first home.

The changes to stamp duty in Victoria could potentially leave you thousands of dollar better off and could be just the push you need to finally afford that deposit on your first home.

Here's what's changed

Essentially, first home buyers will no longer have to pay stamp duty in Victoria when they purchase a new or existing house, apartment, or off the plan property for less than $600,000.

First home buyers will:

  • No longer pay stamp duty on properties up to $600,000
  • Enjoy a resulting saving of up to $15,000
  • Get a (projected) average saving of $8,000

Here's what those savings look like on a range of home prices.

Price of homeStamp duty chargedProjected saving
$300,000 $0 $5,685
$350,000 $0 $6,935
$400,000 $0 $8,185
$500,000 $0 $10,985
$600,000 $0 $15,535

Those buying homes over above $600,000 but less than $750,000 will be required to pay stamp duty. However, they will receive a concession which will be determined on a sliding scale.

Changes to take effect from July 1, 2017.

Source: Victorian Government

Am I eligible?

Tens of thousands of first home buyers will be able to enjoy a share in the savings. However, there are some restrictions depending on your situation and circumstances.

To be eligible you must:

  1. Be a first home buyer
  2. Be an Australian citizen or permanent resident
  3. Live in the property after purchase for 12 months+

You will not be eligible if you:

  1. Have previously purchased a home
  2. Intend to buy for investment purposes
  3. Are not an Australian citizen or permanent resident
  4. Intend to spend more than $750,000

melbourne townhouse picture article imageWhat can I do next?

If you're a first home buyer, we could help you to secure a home sooner. At Rapid Finance, we have access to a range of home loan products, suitable for a range of needs and budgets.

We could help you to take advantage of these stamp duty cuts as well as other benefits such as the first home buyers grant with a home loan that's right for your circumstances.

Learn more on our home loans page or call 1300 467 274