The Victorian Coalition Government is delivering on its commitment to make purchasing a new home more affordable for first home buyers, young farmers, pensioners and concession card holders and self funded retirees, said Member for Gippsland East, Tim Bull today.

The Coalition Government is delivering the keys for first home buyers who have been increasingly priced out of the home buyers market over recent years due to increasing property prices and cost of living pressures, with a number of measures announced by the Treasurer, Kim Wells, this week.

On contracts settled from 1 July, the Coalition Government will cut stamp duty by 20 percent for eligible home buyers and will progressively increase this cut to 30 percent from 1 January 2013, 40 percent from 1 January 2014, and 50 percent by September 2014.

“The Coalition Government understands how long it takes to save up for your first home and that massive stamp duty taxes are often the difference between the excitement of making a successful bid and the disappointment of being locked out of the property market,” Mr Bull said.

“I am also especially pleased with the announcement that there will be stamp duty assistance for young farmers buying their first farm, with the government actively encouraging young men and women to pursue a career in food and fibre production.

“For contracts entered into from 1 July, young farmers aged under 35 who buy their first farmland property valued up to $300,000 will be exempt from paying stamp duty and young farmers will also be entitled to a concession for farmland properties valued between $300,000 and $400,000.”

The Coalition Government will also continue the existing First Home Owner Grant and Bonuses for new homes and eligible first home buyers, purchasing homes worth up to $600,000, will be eligible for $13,000 if they purchase a new home in metropolitan Melbourne and $19,500 if they purchase a new home in regional Victoria. This is in addition to the $7,000 available under the First Home Owner Grant for homes worth up to $750,000. 

Mr Bull said, the Coalition Government recognises the difficulty pensioners, concession cardholders and self-funded retirees face when purchasing a suitable property, especially when they may wish to downsize to a smaller home, yet cannot afford the stamp duty costs.”

The Coalition Government will increase the pensioners and concession cardholders stamp duty concession threshold from $440,000 to $750,000 for contracts entered into from 1 July, 2011.

Pensioners and concession cardholders will be entitled to a full exemption for properties valued up to $330,000 and a concession will be available for properties valued between $330,000 and $750,000.

Currently pensioners buying property valued above $440,000 receive no benefit at all.

“For the first time, self-funded retirees who hold a Commonwealth Seniors Health Card will also be eligible for these concessions,” Mr Bull said.