Stamp duty policy ‘the start of a new economic direction’, shadow treasurer James Newbury says

The Allan government has blasted the Victorian opposition’s billion-dollar commitment to slash stamp duty, warning it would cost more than double what has been pledged.

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The Allan government has blasted the Coalition’s centrepiece economic policy, warning it would cost more than double what has been pledged.

As revealed by the Herald Sun, an elected Battin government would axe stamp duty for first-home buyers that spend up to $1m.

The opposition has said the policy – expected to save $55,000 in taxes on the purchase of any existing or new home – would cost $1bn.

But Housing Minister Harriet Shing on Tuesday afternoon warned the policy would cost “at least double” what the opposition had proposed.

“These are numbers which the opposition has made up on the fly,” she said.

“Even on the most conservative estimates, the opposition’s budget reply has shown us very clearly that they don’t have any sense of accuracy when it comes to calculations.

“They say just trust us when it comes to their costings and in fact what we do know is this money has to come from somewhere.”

Brad Battin and the opposition are pledging to axe stamp duty for first home buyers spending up to $1m. Picture: Diego Fedele

Ms Shing said the policy wouldn’t amount to more housing supply and claimed the opposition would cut into frontline services to fund the loss in revenue.

“When it comes to delivering on housing, coming from the Member for Brighton who doesn’t want any more homes built in his backyard, it’s more than a little bit of a joke, it’s a cruel hoax on Victorians and it will come at the expense of frontline services,” she added.

Stamp duty would be axed for first home buyers spending up to $1m if the Victorian opposition is elected to government next year.

Under the massive $1bn commitment first-home buyers would save up to $55,000 in taxes on the purchase of any existing or new home.

Modelling prepared for the opposition forecasts 17,000 Victorians could be eligible for the massive savings in its first full year of operation.

The bold policy commitment was ratified at a Coalition shadow cabinet meeting on Monday, and creates a key policy battleground 18 months out from the November 28 election.

It’s expected to be a key economic stimulus for developers and incentive for Victorians to get into the housing market.

It’s also pitched at attracting a desperately-needed younger vote for the Coalition.

Latest polling data shows the Coalition is narrowly leading Labor on the matter of housing attainability.

However younger voters overwhelmingly back Labor to manage the issue better.

The Coalition is also trailing Labor 23 to 35 on primary vote share among 18 to 34 year olds with pollsters warning the youth vote is crucial to electoral success.

The Coalition is narrowly leading Labor on the matter of housing attainability, according to polling. Picture: iStock

The stamp duty concession is the fifth tax the Coalition has committed to scrapping following the schools’ payroll tax, GP tax, Airbnb tax and controversial new fire services levy.

The commitments have raised questions about how the Coalition would plug the expected multi-millions dollar hole left by removing the taxes.

But shadow treasurer James Newbury said the policy would be fully funded and costed in a broader economic plan.

“Stamp duty is a tax on aspiration. It punishes hardworking people for doing the right thing – saving, working, and trying to build a future,” he said.

Victorian shadow treasurer James Newbury says ‘stamp duty is a tax on aspiration’. Picture: Getty

“We’re proud to be the first side of politics in this state to say enough is enough.

“This policy is the start of a new economic direction – one that backs growth, investment and ambition.

“Labor’s only plan is more tax, more debt and more broken promises. Ours is about cutting through the cost barriers and getting people into homes.”

Opposition Leader Brad Battin said the commitment would help the next generation of Victorians get ahead.

“We know how hard it is for young people to save for a home when Labor has taxed them at every turn,” he said.

“Scrapping stamp duty for first-home buyers is a bold and practical step to give them a real shot.”

The policy is expected to be a key economic stimulus for developers and incentive for Victorians to get into the housing market. Picture: iStock

Earlier this month the Allan government extended a stamp duty saving scheme on all apartments, units and townhouses bought off-the-plan. Under the plan anyone buying off-the plan will have a significant portion of their stamp duty waived with no cap on the value of the property.

Stamp duty discounts for off-the-plan developments had previously been limited to first home buyers spending under $750,000, and for owner-occupiers spending less than $550,000.

Cath Evans, the Victorian executive director of the Property Council, said the policy would help open up access to housing for many Victorians.

“Stamp duty has always been the worst property tax of the lot,” she said. Ms Evans said up to 43 per cent of the cost of a new home was eaten up by government taxes and charges.

Originally published as Stamp duty policy ‘the start of a new economic direction’, shadow treasurer James Newbury says