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News.com.au
27-05-2025
- Business
- News.com.au
Victorian first-home buyer stamp duty concession scheme fails thousands
Thousands of Victorian first-home buyers are being slugged with massive tax bills as the state's primary support program for them falls short. It comes as analysis shows Victorian state opposition plans to raise the cap on the first-home buyer stamp duty concession program to $1m would add 204 suburbs to the list where market entrants don't have to pay stamp duty. Currently there are fewer than 20 where the median house price falls within the necessary parameters. 'Thrilled': one seller, three separate first-home buyers Australian Bureau of Statistics data shows there were 36,756 new first-home buyer loans issued in Victoria in the 2023-2024 financial year. The ABS stats show a further 1893 home loans were issued to first-home buyers purchasing an investment property in that same year. However, State Revenue Office data shows that just 32,849 payments were made under the first-home buyer concession scheme that waives stamp duty for purchases for up to $600,000 and provides a discount from there to $750,000. For a $750,001 home purchase stamp duty totals at $40,070, for a $1m purchase it reaches $55,000. Yesterday the Victorian opposition announced it would raise the cap to $1m in a move that would bring the state closer to the margins being offered in Queensland and NSW, as well as reflecting a federal government decision to raise the cap on their incoming Help To Buy co-buying scheme. Their modelling suggests it would help 17,000 people buy a home within a year, however would not be implemented until after at least the next state election in November, 2026 — as the party would have to first win office before it could be rolled out. PropTrack median house sale data shows there are currently 19 suburbs that fit beneath the $600,000 cap, but 204 would be applicable under the opposition's revision. Separate PropTrack sales data show that in the past week there were at least 263 homes sold in the past week would have qualified for the state's scheme on price, at the opposition's revised threshold 868 home sales in the past seven days would have. It would return former first-home buyer hubs to the list of areas available to them without having to pay a hefty tax bill, including Sunshine, Watsonia, Reservoir and Greenvale where the typical home today costs more than $750,000 and is beyond any form of stamp duty support. Real Estate Institute of Victoria interim chief executive Jacob Caine said with home values widely tipped to rise in the coming year, the state government should make the change immediately rather than waiting for the Liberal party to take it to an election. 'There's only one reason the government wouldn't make these changes today and that's because they want and need the revenue they are taking from first-home buyers for these stamp duty payments,' Mr Caine said. With research regularly showing stamp duty was an inefficient tax, he said it should not be allowed to continue stopping first-home buyers from purchasing the right home for them near where they work and where their family lives. He added that with the changes enough to add 185 suburbs to the list covered for stamp duty waivers, it would also likely slow any home price growth caused by the tax tweak. Mortgage Choice loan broker David Thurmond said the state's program needed to be reviewed, as it hadn't been updated since 2017 and there would 'definitely' be thousands buying homes outside of the current caps. 'And what has happened since? A tremendous increase to values,' Mr Thurmond said. 'It is forcing people to make compromises on the suburbs they are living in and it's meaning they have to buy a second home later on, as they grow out of their first. 'There are definitely people who could go to $800,000 if the stamp duty was removed.' The broker said while it was likely home values would rise in response to first-home buyers effectively getting a boost to their budgets, the addition of so many more suburbs to the potential buying pool would likely diffuse the impact — and the support was needed right now. By contrast, he said that none of his clients would benefit from the Allan government's stamp duty concessions for off-the-plan purchases for up to $1m. To generate more housing, Mr Thurmond said additional targeted grants at new homes would also be necessary. SUBURBS WITH HOUSES UP TO $1M Melton - $475,000 Melton South - $522,000 Kurunjang - $538,000 Melton West - $540,000 Brookfield - $550,000 Dallas - $560,000 Coolaroo - $560,000 Weir Views - $570,000 Harkness - $572,000 Wyndham Vale - $575,000 Thornhill Park - $580,500 Broadmeadows - $585,000 Laverton - $590,000 East Warburton - $590,000 Longwarry - $595,000 Millgrove - $597,500 Bacchus Marsh - $599,500 Doveton - $600,000 Meadow Heights - $600,000 Frankston North - $605,000 Werribee - $606,000 Jacana - $608,500 Maddingley - $610,000 Albanvale - $612,000 Kings Park - $618,000 Wallan - $620,000 Hoppers Crossing - $620,000 Campbellfield - $621,000 Cobblebank - $625,000 Strathtulloh - $625,000 Rockbank - $625,000 Mambourin - $626,500 Diggers Rest - $635,000 Eumemmerring - $635,000 Kalkallo - $640,000 Manor Lakes - $640,000 Badger Creek - $640,000 Deanside - $642,000 Mount Cottrell - $642,000 Darley - $649,500 Donnybrook - $650,000 Tarneit - $650,000 Craigieburn - $650,000 Pakenham - $652,000 Delahey - $652,500 Werribee South - $652,500 Roxburgh Park - $653,000 Truganina - $655,000 Beveridge - $656,500 Cranbourne - $658,500 Westmeadows - $660,000 Warburton - $660,000 St Albans - $662,500 Epping - $663,000 Hampton Park - $665,000 Junction Village - $665,000 Deer Park - $669,000 Mickleham - $669,900 Koo Wee Rup - $670,000 Hastings - $670,000 Sunbury - $675,000 Ardeer - $676,300 Wollert - $680,000 Bonnie Brook - $680,000 Cranbourne West - $683,000 Sunshine West - $685,000 Woori Yallock - $694,000 Clyde - $695,000 Fraser Rise - $697,500 Mernda - $700,000 Kealba - $700,000 Lalor - $701,000 Sydenham - $701,000 Capel Sound - $705,000 Yarra Junction - $707,500 Cranbourne East - $710,000 Lang Lang - $710,000 Carrum Downs - $711,000 Whittlesea - $715,000 Altona Meadows - $716,000 Cranbourne North - $717,000 Lancefield - $717,500 Officer - $720,000 Thomastown - $720,000 Blind Bight - $722,500 Aintree - $723,750 Clyde North - $725,000 Dandenong - $725,000 Crib Point - $727,500 Hallam - $728,000 Seville East - $729,500 South Morang - $730,000 Baxter - $730,000 Bunyip - $732,500 Gladstone Park - $733,000 Burnside Heights - $735,000 Frankston - $735,000 Sunshine North - $736,000 Braybrook - $740,000 Albion - $740,000 Launching Place - $742,500 Caroline Springs - $743,500 Garfield - $745,000 Tullamarine - $745,000 Narre Warren - $748,750 Point Cook - $750,000 Eynesbury - $750,000 Nar Nar Goon North - $750,000 Seabrook - $752,500 Doreen - $760,000 Dandenong North - $760,000 Rosebud - $760,000 Keilor Downs - $765,000 Fawkner - $766,500 Noble Park - $770,000 Noble Park North - $777,500 Brooklyn - $780,000 Sunshine - $782,500 Lynbrook - $783,000 Skye - $787,000 Burnside - $788,000 Williams Landing - $792,000 Kilsyth - $795,000 Kingsbury - $797,500 Mill Park - $798,000 Heidelberg West - $800,000 Romsey - $800,000 New Gisborne - $800,000 Keilor Park - $800,000 Hillside - $801,000 Endeavour Hills - $805,000 Mooroolbark - $812,000 Glenroy - $815,000 Narre Warren South - $815,000 Attwood - $815,000 Officer South - $820,000 Lilydale - $820,000 Seaford - $820,000 Healesville - $820,000 Maidstone - $821,000 Cranbourne South - $821,500 Coldstream - $822,500 Selby - $824,750 Silvan - $825,000 Belgrave - $827,500 Springvale - $830,000 Kalorama - $835,000 Mount Evelyn - $838,000 Springvale South - $838,000 Monbulk - $838,000 Tyabb - $840,000 Hadfield - $850,000 Seville - $850,000 Bundoora - $850,000 Chirnside Park - $850,000 Boronia - $850,000 Tootgarook - $850,500 Langwarrin - $855,000 Heathcote Junction - $855,000 Greenvale - $857,500 Tecoma - $860,000 Somerville - $863,750 Taylors Hill - $865,000 Mount Dandenong - $865,000 Upper Ferntree Gully - $866,500 Cairnlea - $870,000 Cockatoo - $870,000 Ferntree Gully - $870,000 The Basin - $873,000 Upwey - $875,000 Kallista - $875,500 Heidelberg Heights - $875,750 Wesburn - $876,250 Bayswater - $879,000 Berwick - $880,000 Cannons Creek - $887,500 Croydon - $888,000 Carrum - $888,500 Reservoir - $890,000 Botanic Ridge - $895,000 Bayswater North - $897,500 Croydon South - $897,500 Avonsleigh - $900,000 Gowanbrae - $905,000 Watsonia North - $905,000 Williamstown North - $905,000 Keysborough - $910,000 West Footscray - $915,000 Airport West - $917,500 Montrose - $920,000 Altona North - $925,000 Wandong - $925,000 Knoxfield - $930,444 Lyndhurst - $931,500 Wattle Glen - $935,000 Sassafras - $935,000 Yarra Glen - $937,500 Clayton South - $938,500 Kinglake West - $938,500 Chelsea Heights - $940,000 Watsonia - $940,500 Kinglake - $945,000 Taylors Lakes - $945,000 Pearcedale - $947,500 Dromana - $949,000 Footscray - $950,000 Chelsea - $950,000 Riddells Creek - $950,000 Rye - $950,000 Wandin North - $955,000 Scoresby - $961,000 Coburg North - $969,250 Keilor Lodge - $970,000 Emerald - $973,000 Gisborne - $980,000 Avondale Heights - $980,000 Croydon North - $987,000 Hurstbridge - $990,000 Ringwood East - $991,000 Beaconsfield - $1,000,000 Gembrook - $1,000,000 Nyora - $1,000,000
ABC News
20-05-2025
- Politics
- ABC News
Premier Jacinta Allan's new tax riles regional Victorian councils
Victoria's 79 councils have banded together to formally oppose Premier Jacinta Allan's new emergency services tax. The Municipal Association of Victoria (MAV) has pushed back against the controversial Emergency Services and Volunteers Fund (ESVF) in the face of ongoing protests. It has passed a number of resolutions designed to return the responsibility of collecting the levy to the state government. "Basically, we don't think it's a good idea at a local government level to be putting this tax burden on our ratepayers," MAV president Jennifer Anderson said. The resolutions called for adequate administrative funding for local governments to manage the cost of administering the levy; transferring levy collecting to the state, ensuring an equitable funding model; and ensuring equitable fund distribution. CFA members protest on the steps of the Victorian Parliament on Tuesday. ( ABC News: Danielle Bonica ) Cr Anderson said councils did not have the resources to collect the levy or deal with those who refused to pay. "Given it has passed [in parliament], we really feel it should be something that the State Revenue Office should be dealing with, not local councils," Cr Anderson said. Cr Anderson said the amount of financial support given to local governments by the state government had declined in recent years, as evidenced in a recent parliamentary inquiry. "It's well and truly out there that over time some of the funding sources that were available to councils are either no longer available, or have reduced in time," Cr Anderson said. "Councils like to step in and provide services where there are gaps and there isn't a private provider, particularly in your smaller rural communities." CFA members came from across Victoria to join Tuesday's protest. ( ABC News: Danielle Bonica ) Statewide issue Thousands of CFA volunteers and farmers gathered in Melbourne and across the state on Tuesday to protest the levy. Ben Blain spoke out against the levy. ( Supplied: Warrnambool City Council ) Warrnambool Mayor Ben Blain, who has been a CFA volunteer for nearly 20 years, told a rally in Warrnambool volunteers who took time away from their families, jobs, and businesses to protect the community should not be punished. "You're putting your life at risk to protect others in your community," he said. "Now they're trying to make you pay for the privilege to do it. "It's just wrong. It [the CFA] is something that should be cherished." Cr Blain said the levy would take close to $20 million out of the Moyne, Corangamite and Warrnambool local government areas. "We [councils] don't want to be the tax collectors for the state government," Cr Blain said. "When the vote went through on Thursday, 280 brigades went offline in protest — 50 of them were here in region 5. "I think that's sending a really clear message, we're not happy. "We want to see something that is fair and equitable because we're the country, we're the big part of Victoria … we're the heart and soul." Brad Battin says his party is committed to "scrapping the tax" if elected next year. ( ABC News: Joseph Dunstan ) On Tuesday the Victorian Opposition promised to scrap the ESVF if it won the next state election. "Under our plan, the Liberals and Nationals will repeal the ESVF and return to the simpler, fairer Fire Services Property Levy — a model that funds fire services transparently, without punishing homeowners, renters and farmers," Liberal leader Brad Battin said. Premier Jacinta Allan told the Victorian parliament the ESVF needed to be funded to provide adequate resourcing to emergency services. "You cannot ignore the fact that more and more is being asked of our emergency services, our state emergency services," she said. "You cannot commit to ripping away … hundreds of millions of dollars from our emergency services without finding it from somewhere else." Spring Street was swarming with CFA volunteers on Tuesday morning. ( ABC News. ) Protesters from across Victoria converge on Spring Street in Melbourne on Tuesday. (ABC News) CFA volunteers rally around the famous clocktower in Camperdown in south-west Victoria. ( Supplied: Chris Rodda ) CFA residents in Camperdown in south-west Victoria rally around the town's clock tower. (Supplied: Chris Rodda) About 50 protesters gathered outside the Morwell office of Labor MP Harriet Shing. About 50 protesters gather outside the Morwell office of Labor MP Harriet Shing. (ABC News: Rachael Lucas) Volunteers in Warrnambool rallied at the town's greyhound racing circuit. ( ABC News: Olivia Sanders ) In Warrnambool, volunteers rally at the town's greyhound racing circuit. (ABC News: Olivia Sanders) How it works The old tax, known as the Fire Services Levy, was used exclusively to fund the Country Fire Authority and Fire Services Victoria. The new, expanded tax will continue to fund the CFA and FRV, along with the State Emergency Service, Triple Zero Victoria and six other emergency-related government agencies. For farmers, the new tax will increase by 150 per cent to 71.8 cents for every $1,000 of property value, while for home owners it will double to 17. 3 cents. Rebates are available to all SES and CFA volunteers, but only on their principal place of residence. Alternatively, farmers who volunteer can access a rebate on their farm, but this is capped at $5 million, meaning a maximum rebate of $3,865. There is a drought rebate available for farmers in local government areas receiving drought support — these farmers will be taxed at the same rate as under the Fire Services Levy. The state government will raise $1.6 billion from the ESVF next financial year, up $600 million on the previous year. It has budgeted $26 million for rebates in 2025–26.
