Housing industry says cuts to Victorian stamp duty don't go far enough

THE housing industry says cuts to stamp duty promised by the major parties don't go far enough to alleviate the affordability crisis.

THE housing industry says cuts to stamp duty promised by the major parties don't go far enough to alleviate the affordability crisis.

Opposition Leader Ted Baillieu confirmed yesterday the Coalition would halve stamp duty for first- home buyers, describing it as an "essential step" to ease the mortgage burden of families and prospective first-time owners.

Treasurer John Lenders defended the narrow scope of Labor's plans to abolish stamp duty for first-home buyers purchasing new homes in regional Victoria, saying this would stimulate housing construction and also ease demand on the metropolitan housing market.

While Mr Lenders would not specify how many people would feel the direct impact of the cuts, calculations based on his statements indicate the $115.4 million regional stamp duty policy would only help about 4500 home-buyers each year.

Earlier in the campaign, Labor said it would raise the concession threshold on stamp duty for pensioners to $750,000.

"Labor's $115m plan is clearly a winner for regional families, couples and empty-nesters," Master Builders Association executive director Brian Welsh said. But he added that the Coalition's package was the best tax choice for Melbourne families aspiring to home ownership and provided real tax reform.

Victorians pay the highest levels of stamp duty in the country, with the $565,000 median price of a Melbourne home attracting stamp duty of almost $29,000.

REBECCA PUDDY, STUART RINTOUL