Stamp duty change expected to be a key stimulus for developers and incentive for Victorians to get into the market

Fees will be reduced on apartments, units and townhouses bought off-the-plan but people will have to be quick to get the discount.

The government has promised to slash stamp duty for all apartments, units and townhouses bought off-the-plan. Picture: David Crosling

Stamp duty will be slashed on all apartments, units and townhouses bought off-the-plan for 12-months after major reforms passed the upper house.

The reduced fees, which are expected to be a key stimulus for developers and incentive for Victorians to get into the market, will be on offer until October 21 next year.

It came after a crossbench push to extend the stamp duty reforms indefinitely was shot down on Tuesday as Labor secured last-minute support from the Greens, Animal Justice MP Georgie Purcell and Legalise Cannabis.

Libertarian MP David Limbrick, who moved the amendment, was backed by the Coalition, Independent Liberal MP Moira Deeming and One Nation’s Rikkie-Lee Tyrell but it was not enough to get it over the line.

Victorian MP David Limbrick. Picture: Ian Currie

Earlier in the day, the Property Council of Australia’s Victorian executive director Cath Evans was accused of “lobbying with Labor against tax cuts” after she urged Liberal MPs to oppose Mr Limbrick’s amendment to avoid any delays.

“There have been many purchasers who have come forward to take advantage of these concessions – these people stand to be significantly disadvantaged by any delay to the passage of the legislation,” she wrote.

The letter prompted backlash from opposition spokesman for planning James Newbury who urged Ms Evans to “reconsider siding with the Labor Government in opposing meaningful tax cuts”.

The Duties Amendment (More Homes) Bill will be returned to the lower house where it is expected to sail through.

Earlier, Mr Limbrick said making the change permanent would help more people break into the housing market.

“If the government is serious about housing affordability, it should make these stamp duty concessions permanent,” he said.

“This is a small change for the government, but stamp duty is a lot for retirees and people trying to get into the property market.”

Property industry figures have raised concerns that the proposed short-term offer will fail to attract new investment.

Opposition leader John Pesutto said: “We know that housing in Victoria is suffering under the weight of inordinately framed tax policies,” he said.

“Under this government, we have a punitive tax regime in Victoria which is weighing so heavily on our housing sector and on construction generally and when it comes to the building of homes for Victorians, part of that is the stamp duty regime.

“So as Liberals and Nationals, when we consider Mr Limbrick’s proposal, we are prepared to support that.”

A Greens spokesperson on Monday, however, said the party was yet to come to a concrete decision.

Premier Jacinta Allan. Picture: Aaron Francis

Property Council of Australia Victorian executive director Cath Evans said while efforts to extend the off-the-plan stamp duty relief were supported in-principle the legislation must be passed “as soon as possible”.

“The probability of any amendment being successfully passed through the Legislative Assembly on review is close to zero,” she said.

“A successful amendment and return of the Bill to the lower house would only delay its passage, possibly until the new year.

“Given these factors, the Property Council’s view is that this legislation needs to be passed in its current form this week, providing certainty for the industry and immediate tax relief that home buyers desperately need.”

The government was contacted for comment.