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Stamp Duty cuts

Final phase of stamp duty cuts entitles eligible first home buyers to a 50% saving

Victorian first home buyers now receive a 50 per cent discount on stamp duty thanks to the final reduction in a series of stamp duty rate cuts introduced in phases by the state government since July 1, 2011.

The duty reduction applies to the purchase of principal place of residence valued at not more than $600,000 and where the settlement date is on or after 1 July 2011.

Eligibility criteria for the duty reduction for both new and established homes include residing in the property for a continuous period of 12 months commencing within 12 months of settlement.

The state government says eligible home owners will save up to $15,535 in stamp duty on dwellings valued up to $600,000, and will save 26,000 Victorians a total of $200 million over the next year.

First home builders will also benefit with a $10,000 grant for newly constructed homes, which will apply along with the stamp duty cut.

Victorian Treasurer Michael O'Brien says the cut, which has been increased from 40 per cent, will have a number of benefits.

"This is a very important measure which will make home ownership more affordable for tens of thousands of Victorians," he said.

"It will ensure that we see more young families moving into that first home."

Mr O'Brien said it would also support jobs in the construction industry, which was one of the state's biggest employers with about 250,000 people working in the sector.

What eligible first home buyers will pay and save on stamp duty:

50% reduction duty savings to first home buyers

Value of Property

Normal Rate of Stamp Duty (Principal Place of Residence)

50% Reduction - Duty Payable

50% Reduction - Saving

$200,000

$6,370

$3185

$3185

$300,000

$11,370

$5685

$5685

$400,000

$16,370

$8185

$8185

$500,000

$21,970

$10,985

$10,985

$565,000

$28,970

$14,485

$14,485

$600,000

$31,070

$15,535

$15,535

 How to calculate stamp duty for eligible first home buyers:

For dutiable transactions settled on or after 1 September 2014

Dutiable value of the PPR

Reduced rate of duty

Standard rate of duty

>$0 - $25,000

(1.4% of the dutiable value of the property) less 50%

1.4% of the dutiable value of the property

>$25,000 to $130,000

($350 plus 2.4% of the dutiable value in excess of $25,000) less 50%

$350 plus 2.4% of the dutiable value in excess of $25,000

> $130,000 to $440,000

($2870 plus 5% of the dutiable value in excess of $130,000) less 50%

$2,870 plus 6% of the dutiable value in excess of $130,000

> $440,000 to $550,000

($18,370 plus 6% of the dutiable value in excess of $440,000) less 50%

> $550,000 to $600,000

($28,070 plus 6% of the dutiable value in excess of $550,000) less 50%

 

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