Stamp Duty in Victoria – First Home Buyers Take Note!
Brad Ryan – Harcourts Narre Warren South
I have been asked to add to my blog page some information in relation to what the stamp duty amount payable would be for a first home buyer that is of course going to be living in the home as their PPR ( Principal Place of Residence )
I have collected the information below from the SRO website which is listed below for you to click on to gather additional information based on your own individual situation.
http://tinyurl.com/mmjllw ( SRO Website Link )
As always please consult your conveyancer / solicitor as this information is intended as a guide only.
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For Contracts On Or After 6 May 2008
Duties Rates
Tax rate information according to the Duties Act 2000
|
For the purchase of your home (i.e. Principal place of residence) for contracts entered into on or after 6 May 2008. |
|
|
Dutiable Value Range |
Rate |
| $0 – $25,000 | 1.4 per cent of the dutiable value of the property |
| $25,001 – $130,000 | $350 plus 2.4 per cent of the dutiable value in excess of $25,000 |
| $130,001 – $440,000 | $2,870 plus 5 per cent of the dutiable value in excess of $130,000 |
| $440,001 – $550,000 | $18,370 plus 6 per cent of the dutiable value in excess of $440,000 |
| $550,001 – $960,000 | $28,070 plus 6 per cent of the dutiable value in excess of $550,000 |
| More than $960,000 | 5.5 per cent of the dutiable value |
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Principal Place Of Residence
What is a PPR concession?
A Principal Place of Residence (PPR) concession is a concessional rate of duty that applies to transfers of property where the contract of sale is entered into on or after 1 January 2007 and the land purchased is intended to be occupied as a PPR.
The applicable concessional rate of duty depends on the dutiable value of your PPR and the date on which the contract to purchase the PPR was entered into.
For contracts entered into on or after 6 May 2008:
|
Dutiable value of the PPR |
Reduced rate of duty |
Standard rate of duty |
Difference |
| > $130,000 to $440,000 | $2,870 plus 5% of amount > $130,000 | $2,870 plus 6% of amount > $130,000 | Rate reduction of 1% |
| > $440,000 to $550,000 | $18,370 plus 6% of amount > $440,000 | Duty reduction of $3100 |
For a complete range of homes for sale see my website www.bradleyryan.harcourts.com.au
First Home Buyers Grant – Victoria**Updated**
After much confusion again about ” what do I get in Victoria ” questions, here is the latest table straight from the State Revenue Office ( http://www.sro.vic.gov.au/sro/SROWebsite.nsf/rebates_fhog_overview.htm )
A table, which sets out the different amounts that first home buyers in Victoria may be eligible for, is shown below.
| Contract Date | Conditions | First Home Owner Grant (FHOG) | New First Home Owner Boost | First Home Bonus # | First Home Owner Regional Bonus # |
Total |
| From 1 January 2010 to 30 June 2010 Note: This information has been taken from the Premier’s announcement on 6/5/2009 and the 2009-2010 Federal Budget. This information is subject to legislative approval. | Established homes only | $7,000* | $0.00 | $2,000 | $0.00 | $9,000 |
| Newly constructed homes in Metropolitan Victoria only | $7,000* | $0.00 | $11,000 | $0.00 | $18,000 | |
| Newly constructed homes in Regional Victoria only | $7,000* | $0.00 | $11,000 | $4,500 | $22,500 | |
| From 1 October 2009 to 31 December 2009 Note: This information has been taken from the Premier’s announcement on 6/5/2009 and the 2009-2010 Federal Budget. This information is subject to legislative approval. | Established homes only | $7,000 | $3,500 | $2,000 | $0.00 | $12,500 |
| Newly constructed homes in Metropolitan Victoria only | $7,000 | $7,000 | $11,000 | $0.00 | $25,000 | |
| Newly constructed homes in Regional Victoria only | $7,000 | $7,000 | $11,000 | $4,500 | $29,500 | |
| From 1 July 2009 to 30 September 2009Note: This information has been taken from the Premier’s announcement on 6/5/2009 and the 2009-2010 Federal Budget. This information is subject to legislative approval. | Established homes only | $7,000 | $7,000 | $2,000 | $0.00 | $16,000 |
| Newly constructed homes in Metropolitan Victoria only | $7,000 | $14,000 | $11,000 | $0.00 | $32,000 | |
| Newly constructed homes in Regional Victoria only | $7,000 | $14,000 | $11,000 | $4,500 | $36,500 | |
| From 14 October 2008 to 30 June 2009 | Established homes only | $7,000 | $7,000 | $3,000 | $0.00 | $17,000 |
| Newly constructed homes in Metropolitan Victoria only | $7,000 | $14,000 | $5,000 | $0.00 | $26,000 | |
| Newly constructed homes in Regional Victoria only | $7,000 | $14,000 | $5,000 | $3,000 | $29,000 | |
| From 6 May 2008 to 13 October 2008 | Established homes only | $7,000 | $0.00 | $3,000 | $0.00 | $10,000 |
| New homes in Metropolitan Victoria only | $7,000 | $0.00 | $5,000 | $0.00 | $12,000 | |
| New homes in Regional Victoria only | $7,000 | $0.00 | $5,000 | $3,000 | $15,000 | |
| From 1 January 2007 to 5 May 2008 |
Established homes only | $7,000 | $0.00 | $3,000 | $0.00 | $10,000 |
| New homes only | $7,000 | $0.00 | $5,000 | $0.00 | $12,000 | |
| From 1 January 2006 to 31 December 2006 | Established and New homes | $7,000 | $0.00 | $3,000 | $0.00 | $10,000 |
| From 1 May 2004 to 31 December 2005 | Established and New homes | $7,000 | $0.00 | $5,000 | $0.00 | $12,000 |
* Additional Conditions:To be eligible to receive the FHOG, for contracts entered into between 1 January 2010 and 30 June 2010, the value of the property must not exceed $600,000
# Additional Condition: To be eligible to receive the Bonus and Regional Bonus for contracts entered into up to 30 June 2009, the value of the property must not exceed $500,000. For contracts entered into between 1 July 2009 to 30 June 2010, the value of the property must not exceed $600,000
The information provided in the above table is to be used as a guide only.
For a list of New & Established Homes see my website www.bradleyryan.harcourts.com.au
First Home Buyers – Grants, Boosts & Bonus!
Grant available on this home of $17,000
Below is a summary of the Federal Budget 2009
First Home Owner’s Boost, worth an extra $14,000 for buyers of a newly built home and $7,000 for buyers of existing homes, to be extended until September 30 at the full rate. From October 1, the Boost will be halved to $7,000 for new homes and $3,500 for existing homes, and will no longer be offered after December 31. Original scheme of $7000 for new home buyers to be retained.
- Grant available on this home $21,000
For a range of established and new homes available to take full advantage of the ongoing Federal Government new home buyers grants see my website www.bradleyryan.harcourts.com.au
First Home Buyer News!
First home buyers…It has been reveled by “Crikey’ that The Australian Banks, currently led by the Commonwealth, are about the end the dream for first home buyers, and could to some extent bring the downfall to our economy that is being fulled by first home buyers.
As of Monday….yes Monday the 23rd!! The Commonwealth Bank will not recognise the first home buyers grant of $14,000 for an existing home and furthermore the $21,000 for a new home as proof of savings.
They will now demand a percentage of savings over three months, 3% in fact of the purchase price leading up to your application. The CBA will also not accept gifts or other forms of financial assistance from mums and dads, grandparents or uncles as the proof of saving that new dreaded 3%, if it has not been in a account for at least three months.
The banks have been swamped with loan application’s and are doing their best to slow down the process, with a tougher stand on credit checks and valuations of property’s are all OK.
With this huge volume of loan applications the banks are seeing, this proves yet again that there should be an extension to the government grants, and now is a great time to sell and upgrade or to get your very own first home. For me now more than ever is the right time to buy your very own piece of Australia, so get out there find that dream home and grab it!
For all the latest property results look up my website www.bradleyryan.harcourts.com.au or follow me on “twitter” brad_ryan
Have a Fantastic weekend!
Brad 
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