Your stamp duty questions answered

Victorians planning to buy a new home are in for a sweetener. This is what you must do to secure a discount.

The state government unveiled huge stamp duty discounts in its Tuesday Budget, in a move designed to help those house hunters and the struggling industry. Here’s what you need to know.

WHAT IS ON OFFER?

From now until June 30, 2021, there will be a stamp duty discount on the sale of homes worth under $1 million. Buyers of new builds will have access to a 50 per cent waiver, up to $27,500, and existing residential properties will have discounts of 25 per cent, up to $13,250.

WHEN CAN I ACCESS IT AND HOW?

Immediately. The discount will be factored in as part of the normal process of signing a contract on a property and paying the State Revenue Office. Stamp duty is typically owed within 30 days of settlement.

WHAT IF I AM A FIRST HOME BUYER OR HAVE OTHER CONCESSIONS?

The new discount is in addition to any other state government discounts that may already exist, including the First Home Buyer Duty scheme. You will have the discount applied to the amount of stamp duty you owe after these concessions have been considered.

HOW MANY BUYERS WILL BENEFIT?

Tens of thousands. More than 67,000 houses and apartments have been sold in Victoria over the past year, according to realestate.com.au. State Treasury officials have advised that 87 per cent of homes sold over the past two years were in this price range.

WHAT OTHER RULES APPLY?

Unlike other waivers, the discount applies on all residential properties under $1 million even if it is not your primary residence. Most types of vacant residential land are also included.