Temporarily slashing stamp duty concessions for all off-the-plan apartments, units and townhouses will not drive up house prices, Premier Jacinta Allan says.
Fresh from unveiling a controversial planning controls overhaul, Ms Allan on Monday announced Victorian stamp duty concessions would be immediately expanded to all buyers and uncapped.
Thresholds for stamp duty concessions had previously been set at $750,000 and $550,000, minus construction costs, for first home buyers and owner occupiers respectively.
Eligibility for the concessions has been expanded to investors and the value cap removed for one year from October 21, as long as the off-the-plan property is part of a strata subdivision.
We're slashing stamp duty on off-the-plan apartments for every buyer, with no cap.— Jacinta Allan (@JacintaAllanMP) October 20, 2024 Victorian Premier Jacinta Allan is announcing tax cuts for home buyers.
Stamp duty for those properties will instead be calculated on the cost of land before construction, not the total of the finished property.
The government estimates the changes will lower stamp duty on a $620,000 off-the-plan apartment from $32,000 to $4000 - a $28,000 discount.
"This initiative is designed to do three things: build more homes, build more homes and build more homes," Ms Allan told reporters at a recently opened build-to-rent project in North Fitzroy on Monday.
"These concessions will make a difference."
Ms Allan said the 12-month stimulus plan was a response to a cry for help from under-pressure builders as interest rate rises cool the market.
If building is already under way on an off-the-plan apartment, unit, and townhouse, owners will still get a discount but savings will depend on how much construction has occurred.
Treasurer Tim Pallas said the changes were expected to cost the government about $55 million and would benefit other prospective buyers.
"The aim here is to get more stock into the market," he said.
"Without more stock in the market then, of course, laws of supply and demand apply, and the cost pressures impact upon any purchaser, particularly those at the bottom of the market."
Jacinta Allan has unveiled a plan to create 50 new "activity centres" to deliver 30,000 homes. (Joel Carrett/AAP PHOTOS)
The premier foreshadowed she would release more housing policies and initiatives during the week.
Ms Allan received a hostile reception on Sunday as she unveiled a plan to create 50 new "activity centres" to help deliver more than 30,000 additional homes across Melbourne by 2051.
The dwellings would be a mixture of townhouses and apartments centred on 50 high-frequency train stations and tram stops, including in Melbourne's leafiest and most expensive areas such as Toorak, Armadale and Brighton.
Brighton residents, angered by the move paving the way for taller buildings, surrounded the hotel where the premier announced the plan, chanting "shame premier shame".
Opposition Leader John Pesutto criticised the Allan government for failing to consult residents.
Ms Allan pushed back at a suggestion the planning overhaul of mostly conservative electorates was politically motivated, slamming the not-in-my-back-yard (NIMBY) movement.
"I'm determined to fight for those Victorians who need the government to fight back against this NIMBY-style approach," she said.