Authority Updates - Intended changes to State Revenue Office Victoria (SRO VIC) duties and taxes

The Victorian State Revenue office has announced a series of changes to duties and taxes, these are set to be introduced in the coming months.

The Victorian State Revenue office has announced a series of changes to duties and taxes, these are set to be introduced in the coming months

  1. Increase to First Home Owner Grant (FHOG) for new homes built in Regional Victoria

    The FHOG is expected to be doubled from $10,000 to $20,000, for new homes built in regional Victoria and valued up to $750,000.

    If this initiative is passed, it will apply for contracts signed from 1 July 2017 to 30 June 2020.

    First-home buyers of new homes in metropolitan Melbourne will continue to receive the current grant of $10,000.

    For more information visit http://www.premier.vic.gov.au/first-home-owner-grant-to-double-in-regional-victoria/

  2. Stamp duty abolished for first-home buyers

    Costs involved when purchasing your first home have grown considerable, making it impossible for many first home buyers to purchase their first home. To assist first home buyers, stamp duty (land transfer duty) will be abolished for first-home buyers purchasing a new or existing home with a dutiable value of not more than $600,000.

    Currently first home buyers get a 50% duty reduction when purchasing a home with a dutiable value of not more than $600,000 but as part of this change a full exemption of stamp duty will apply. 

    Sliding scales of duty discount will apply for eligible first-home buyers, who purchase a home with a dutiable value between $600,001 and $750,000.

    Discount will be in addition to existing First Home Owner Grants

    For more information including eligible criteria, please find fact sheet attached or visit http://www.vic.gov.au/affordablehousing/buying-a-house-in-victoria/abolishing-stamp-duty.html

  3. Vacant property tax proposed in Victoria

    A self-reporting Vacant Residential Property Tax (VRPT) is planned to be introduced in Victoria. 

    An annual 1% tax rate will be levied on dwellings that are vacant for more than a total of six months in a calendar year.

    Owners of vacant residential property will be required to notify the SRO of any vacant properties that they own. Exemptions will apply to holiday homes, city units for work purposes, properties in deceased estates, and homes subject to legitimate temporary absences.

    For more information please visit new measures vacant property.

  4. Changes to the off-the-plan concession

    The off-the-plan concession will now only apply to buyers who occupy the property as their principal place of residence (PPR), or who qualify for the new first home buyer stamp duty concessions. This is expected to rebalance the market between property investors and home buyers.

    The current off-the-plan stamp duty concessions mean the beneficiaries only pay stamp duty, on the value of their land, before construction begins.

    The new initiative will apply to contracts entered into from 1 July 2017.

    For more information including eligible criteria, please find fact sheet attached or visit http://www.vic.gov.au/affordablehousing/buying-a-house-in-victoria/re-balancing-the-market.html

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    Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.