On Tuesday, the Victorian Government announced significant temporary tax relief for owners and buyers of property in Victoria in its 2020-2021 State Budget.
Waiver of duty
For property valued up to $1 million:
- buyers of eligible new or off-the-plan residential property are eligible for a 50 percent waiver of duty; and
- buyers of eligible existing residential property are eligible for a 25 percent waiver of duty.
For example, a purchaser of a newly constructed residential property valued at $750,000 will now save $20,035 in duty.
The duty waiver applies to contracts entered into on or after 25 November 2020 and up to 30 June 2021.
The Victorian Government is also bringing forward the commencement of its 50 percent duty concession for purchases of commercial and industrial property in regional Victoria. This will now take effect from 1 January 2021.
First Home Owners Grant
The $20,000 First Home Owners Grant available to buyers of residential property in regional Victoria has been extended by 1 year until 30 June 2021.
Land tax
Certain build-to-rent developments will be eligible for a 50 percent discount on land tax from 2022 until 2040.
Eligible developments will also be exempt from the absentee owner surcharge for the same period.
Continued monitoring
We will update you when further information becomes available.
More information
If you require advice or assistance on how these changes may impact you, or for assistance with your property related matter, please contact Morgan Scholz, Head of Property, on (03) 8600 8890 or mscholz@kcllaw.com.au, Mark Yaskewych, Principal Lawyer, on (03) 8600 8830 or myaskewych@kcllaw.com.au, or Geoff Kliger, Senior Special Counsel, on (03) 8600 8878 or gkliger@kcllaw.com.au.
Author
This Property update was authored by Kylie Marotta, Lawyer.
Note: This update is a guide only and is not intended to constitute legal advice.