Liberals commit to axing stamp duty for first home buyers

THE Victorian Liberals have made a stamp duty election pitch straight at families and young people looking to get onto the housing ladder.

At the weekend, the Liberals said their government would remove the requirement for first home buyers to pay stamp duty on all purchases of property up to $1 million.

The zero stamp duty policy, which would start on January 1 and run for a year, is expected to help as many as 7,000 families and young people and is intended to correspond with the median Melbourne house price of $993,000.

Using this figure, the Liberals say the average first home buyer would save about $55,000, and that the independent Parliamentary Budget Office had costed the policy at $261 million.

“Helping Victorians to achieve the Great Australian Dream of home-ownership is all part of our Long-Term Economic Plan,” Opposition Leader 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 was putting together a deposit, which is typically at least 10 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.”

Shadow Treasurer David Davis said the cut was 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.”