If you are a prospective buyer or seller in Victoria, you may have heard the news that stamp duty could be scrapped if a new inquiry identifies a suitable alternative to land tax.
This motion introduced by Liberal Democrat David Limbrick aims to get the wheels moving so that something can be done to tackle the issues of housing affordability, homelessness, and inequality in Victoria.
Currently, stamp duty can be a massive hurdle for people who want to get into the housing market. For example, someone buying a house in Melbourne at the median price of $746,000 will pay nearly $40,000 in stamp duty.
If it’s their first home, they will pay nearly $39,000.
Every time you raise the bid by $10,000, stamp duty goes up by $600. This can make it challenging for first-time buyers to get a foothold on the property ladder.
Scrapping stamp duty would be a significant boost to the Victorian property market, making it easier for people to buy and sell properties. This move could potentially revitalize the property market, increase demand, and stimulate economic growth.
However, it is important to note that people buying and selling property should seek help from various professionals, such as accountants, property advisors, and conveyancers, to get tailored advice for their needs.
It is important to note that a motion introduced by Liberal Democrat David Limbrick for an inquiry into stamp duty passing the Victorian upper house in February is by no means indicative that the removal of stamp duty is a real possibility. There are many stages that any legislation removing stamp duty on property would need to go through.
Even if the inquiry identifies a suitable alternative to land tax, there is no guarantee that stamp duty will be removed in the future. It is important to stay informed and seek professional advice before making any significant property decisions, such as buying or selling a property.
At Tick Box Conveyancing, we are here to provide you with the guidance and support you need to navigate the conveyancing process successfully, regardless of any potential changes in the future.
And, whilst stamp duty remains in play, we can help you understand any stamp duty requirements and concessions that may be associated with a property you are looking at purchasing or selling. Our team of experienced conveyancers can provide you with expert guidance and support, ensuring that the conveyancing process runs smoothly.
We understand that selling or buying a property can be a stressful experience, and we are here to provide you with the support you need to make the process as smooth and stress-free as possible.
Ready to make your property journey stress-free? Book your free consultation with our expert conveyancers today!
Q: What is stamp duty?
A: Stamp duty, or land transfer duty, is a tax that the state government charges when buying or acquiring property.
Q: What is the dutiable value?
A: The dutiable value of a property is either the price you paid for it, or its market value, whichever is greater. It means anyone who has been gifted a property, acquired it through a trust, or bought it at a significant discount will still have to pay stamp duty.
Q: How much is stamp duty in Victoria and how is it calculated?
A: Stamp duty is calculated on a sliding scale, depending on the dutiable value of your property. The State Revenue Office sets out rates of duty based on the dutiable value of the property. There are some concessions available that can lower the amount of duty you pay by decreasing the dutiable value of your home, such as for off-the-plan purchases.
Q: How can I calculate how much stamp duty I need to pay?
A: You can use the SRO’s stamp duty calculator to work out how much you may have to pay on your property.
Q: Is stamp duty the same across all Australian states?
A: No, stamp duty rates and regulations vary between each Australian state and territory.
Q: Can I get a discount on stamp duty?
A: There are various concessions and exemptions available that can lower the amount of duty you pay by decreasing the dutiable value of your home, such as for first home buyers, off-the-plan purchases, and properties in regional Victoria.
Q: How can Tick Box Conveyancing help me understand stamp duty requirements and concessions associated with my property?
A: Our team of experienced conveyancers can provide you with expert guidance and support to understand any stamp duty requirements and concessions associated with a property you are looking at purchasing or selling.
We can help you navigate the conveyancing process with ease, ensuring that the legal formalities are taken care of, and the transfer of ownership is done correctly.
For more information, contact us today to schedule a no-obligation consultation with one of our conveyancers.