Victorian 20/21 budget announcement

date November 25th, 2020 category Featured

Victorian Budget 20/21 Announcement

Victoria’s Big Housing Build has been estimated to provide thousands of Victorians the long awaited security and stability of access to a home. The Victorian government has committed $678 million to making housing more affordable and accessible to Victorians via the following initiatives;

Victorian Homebuyer Fund

The Victorian Homebuyer Fund will have a total of $500 million to assist Victorians with home ownership of a property. The fund will contribute to the purchase price of the property in exchange for a proportion of the equity interest. This will assist by reducing the amount required for the deposit allowing Victorians to own their own home sooner. The fund will assist Victorians to purchase either established or a newly built home.

Land Tax discounts

Starting 1 January 2022, Victoria’s Big Housing Build will provide a 50% land tax discount for eligible new developments until 2040.The developments will also be exempt from the Absentee Owner Surcharge over the same period.

Land transfer duty waiver

Stamp duty relief for residential property transactions where the property is valued up to $1 million has been announced. A 50% discount on stamp duty for new residential properties, and 25% for existing residential properties which are purchased for up to $1 million. Contracts need to be entered into from the day after the announcement till 30 June 2021.

First Home Owner Grants (Regional)

The Victorian Government has extended the $20,000 First Home Owner Grant for people buying or building a new home in regional Victoria and will apply to contracts of sale entered into up until 30 June 2021.

Other proposals

  • $5.3 billion in funding to transform social and affordable housing system, allowing for the construction of more than 12,000 new dwellings, including:
  1. 9,300 new social housing dwellings replacing 1,100 old housing units
  2. 2,900 new mainly affordable and low-cost homes in locations that are close to jobs and transport
  • $52 million will be used to implement the Commissioners for Better Regulation’s planning reforms to grow housing supply across the State
  • $59 million will be spend on targeted planning system reforms.

To learn more about the proposed changes please visit https://www.budget.vic.gov.au/place-call-home-victorias-big-housing-build