The Victorian State Government has released its 2020 budget with significant focus on the real estate market. Amongst the numerous announcements that fall under the umbrella of “Victoria’s Big Housing Build”, the Andrews government have proposed $6 billion to be invested in housing initiatives and planning changes, with hopes of re-energising the economy and bolstering job-creation.
One of the key messages was the 50% reduction in stamp duty costs on homes worth up to $1 million until the next financial year. Newly built or off-the-plan homes will be eligible for the full discount, while existing homes will have access to just a 25% reduction. Commercial and industrial regional properties will also receive a “fast-track” of their concession to encourage the opening, relocating and expanding of industry.
While this has not followed the massive overhaul to Stamp Duty which the NSW State Government announced last week, the policy has been welcomed by many.
VICTORIAN HOMEBUYER FUND
The Victorian Homebuyer Fund will provide $500 million to assist those who are not able to achieve the regular 20% deposit for home. The Fund will contribute to the purchase price in exchange for a proportionate equity interest in the property.
LAND TAX DISCOUNT
Land tax on build-to-rent developments will be halved, with a new initiative kicking off for eligible new developments from 1 January 2022 through to 2040. These developments will also be exempt from the Absentee Owner Surcharge over the same period. Investment in the build-to-rent sector will stimulate construction activity, create jobs and support Victoria’s economic recovery.
Victoria’s Big Housing Build will transform the social and affordable housing system with $5.3 billion in funding to construct more than 12,000 new dwellings, including:
- 9,300 new social housing dwellings replacing 1,100 old housing units
- 2,900 new mainly affordable and low-cost homes in locations that are close to jobs and transport
“This investment will also help more Victorians into work, supporting around 10,000 new jobs on average each year over the next four years, with 25 per cent of investment dedicated to regional Victoria.” State Treasurer Tim Pallas said.
“In a year when ‘home’ became increasingly central to our lives, we’re making sure more Victorians than ever have a roof over their heads.”
For more information concerning the 2020 Victorian State Budget – see here.