Tuesday 4 May 2010
Stamp Duty windfall underpins budget and new, larger First Home Bonus
The strong Victorian property market and a $303M increase in stamp duty receipts has
helped ensure a healthy balance sheet for the State Government in 2009-2010 and
highlights the need for stamp duty reform.
REIV CEO Enzo Raimondo said the REIV welcomes increased grants for first home buyers
of a new home and calls for urgent stamp duty reform to assist home buyers paying more
than their fair share in stamp duty.
“Victoria has a 22,000 shortfall of homes and the increased First Home Bonus may help
increase supply.
“Increasing supply is the key to making property price growth more sustainable; however the
increased Bonus for new homes does little to help the other 70 per cent of new home buyers
who buy existing dwellings.
“The fact that first home buyers of a new home will now receive $20,000 in Melbourne and
$26,500 in regional Victoria will help thousands of young people exit the tight rental market
and buy their first home. It is however disappointing that buyers of existing homes will see
the assistance provided to them drop from $9,000 to $7,000 in 1 July.
“It appears that the removal of the $2,000 First Home Bonus for existing homes pays for the
$2,000 increase for new homes.
“This measure will make it harder for 70 per cent of first home buyers and easier for 30 per
cent.
“However increases in stamp duty due the strong residential property market have paid for
most of the State Government budget surplus this year through a $303M windfall from stamp
duty in 2009-2010. This windfall highlights the need for reform of property taxes.
“Affordability of housing remains a serious problem in Victoria.
“The Governments’ failure to revise stamp duty rates means that anyone buying an average
home now will pay, as a percentage of the purchase price, a higher amount of stamp duty
than they ever have before.
“The REIV will continue to raise the need for stamp duty reform until the November election,”
Mr Raimondo concluded.
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Tags: budget, cent, duty, First home buyers, grants for first home buyers, home, need, new home buyers, residential property market, stamp duty rates
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