Any idea when VIC stamp duty concession will end

Discussion in 'The Buying & Selling Process' started by James Baker, 24th Jan, 2019.

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  1. James Baker

    James Baker Well-Known Member

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    Hi

    Any idea when the VIC stamp duty concession will end ?
    Is there any official end date ?

    cheers
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I don't believe there's any end date quoted. It probably will end someday, but it's a politically sensitive subject so it's hard to see happening without the state government being in serious financial stress.

    Keep in mind that for the majority of Victorian housing, it's not really relevant. The benefit is muted for prices over $600k and there's no benefit at all above $750k. These price points are now the cheap end of the market in Melbourne which is where most of the revenue from stamp duty comes from in Victoria.

    In other words, it's not actually costing the state government that much to run this scheme when compared to the rest of the market. At the same time, a government that cancels it is going to be so vilified by the public and the press that they'll have a tough time being re-elected for the next decade. The political cost-benefit equation just doesn't add up.

    The worse case I can see happening is the benefit gets shifted to new builds or something similar, the way the $10k grant was re-framed. This reduces the governments liability to the benefits, but is still more politically acceptable.
     
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  3. jazzsidana

    jazzsidana Well-Known Member

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    Like @Peter_Tersteeg said, no end date ..

    Caveat - "Politics is art of looking for troubles, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies" ... :)
     
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  4. marmot

    marmot Well-Known Member

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    As mentioned previously the government can tinker around the edges with the grants.
    If you were to see unemployment to rise and big job losses in the construction industry they might take away the grants on established properties and only allow it on new builds , if the aim was to create more jobs.
    Unfortunately to then access the grant , you probably would not be allowed to purchase established property.
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Unlikely new build concessions will be reduced at present in any state. The Victorian scheme also give favour to regional housing which is not likely to change.