 | "The bonus has done its job and now the government’s preference is to help all first-home buyers." |
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Government changes helping more Victorian first-home buyers
By
Enzo Raimondo
The Victorian government has changed the way in which it will be assisting first-home buyers so that more people benefit. The first-home buyers’ grant of $7,000 remains available for all those buying their first home for $750,000 or less. The grant is paid by the state government and has no scheduled end date. First-home buyers also benefit from a 20% reduction on their stamp duty bill. That means that on the purchase of a $400,000 home they will save $3,274 and on a $550,000 home they will save $4,994. The stamp duty reduction is not available for homes priced over $600,000. The good news is that on January 1, 2013 the cut to stamp duty will increase from 20% to 30%. That means that on the purchase of a $400,000 home they will save $4,911 and on a $550,000 home they will save $9,321. The stamp duty cut will then increase to 40% on January 1, 2014 and then to 50% on September 1, 2014. From July 1 this year the first-home buyers’ bonus will no longer be available. The bonus was only for first-home buyers of new homes and was introduced a few years ago to stimulate the building of new homes during the GFC. It has done its job and now the government’s preference is to help all first-home buyers. Those buying a new home off the plan will still benefit from concessions to stamp duty. There is other assistance available for different groups, including exemptions for deceased estates, family farms, young farmers and pensioners. Details on those programs and the exact criteria for the assistance for first home buyers can be found at www.sro.vic.gov.au. Enzo Raimondo is CEO of the Real Estate Institute of Victoria.
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