Helping families and young people buy their first home

A Liberals and Nationals Government will help up to 7,000 families and young people to buy their first home, by cutting stamp duty.

For 12 months from the 1st January, we will cut stamp duty for first home buyers to zero for all purchases of property up to $1 million.

This tax cut aligns first home buyer stamp duty relief with the median Melbourne house price – most recently reported at $993,000.

Currently, a first home buyer purchasing a home for the median house price in Melbourne pays around $55,000 in stamp duty. Under our change, they will pay zero dollars in stamp duty.

“Helping Victorians to achieve the Great Australian Dream of home-ownership is all part of our Long-Term Economic Plan”, Leader of the Liberal Party, Matt Guy said.

“While house prices have eased, with recent interest rate increases and the prospect of more, as well as spiralling inflation, it is important that the Government does what it can to assist Victorians into home ownership.”

“This stamp duty cut is affordable, it is modest, and it is achievable.”

Shadow Minister for Housing, Richard Riordan, said the hardest part of entering the housing market is putting together a deposit, which is typically at least ten per cent of the purchase price.

“By cutting stamp duty, first home buyers will save up to $55,000 which they can use to put towards their deposit”, Mr Riordan said.

Shadow Treasurer, David Davis, said that with more debt than New South Wales, Queensland and Tasmania combined, we have taken the decision to make this cut temporary and targeted in order to help first home buyers over the next 12 months.

“The policy will be reviewed prior to the end of 2023 with a decision as to whether to continue it made in the context of the budget, interest rates and the economic environment at the time”, Mr Davis said.

This policy has been costed by the independent Parliamentary Budget Office at $261 million.

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