Win for Victorian home buyers

Win for Victorian home buyersThe Victorian Government has agreed to exempt Australian developers with foreign ownership from the new stamp duty surcharge on foreign investment, saving future homebuyers thousands of dollars.The exemptions outlined in the government’s revised guidelines will ensure that Australian homebuilders with full or partial international ownership will not be forced to pass on the new taxes to future home buyers.The new taxes on foreign investment, announced in the recent state Budget, include a three per cent stamp duty surcharge for house transactions from 1 July, and a land tax surcharge of 0.5 per cent to be applied from 2016.Intense advocacy over the last three weeks from the Property Council and the Urban Development Institute of Australia secured this major win for home buyers. The Property Council’s Victorian executive director Jennifer Cunich says the changes will save aspiring homeowners thousands of dollars, with Australian home buyers in growth areas facing an indirect tax bill of up to $6,000 without the exemption.”This is a great win for home buyers and industry, and is a clear sign that the government knows how to effectively engage with the business community,” Ms Cunich says.According to Danni Addison, chief executive of the Urban Development Institute, the “reworked, common sense approach is both a win for the property development industry and a win for Victorian families seeking their first or next home.”The revised guidelines outline how the new taxes will be applied, what discretion the Treasurer has for enacting his responsibilities, and what development activity and foreign ownership arrangements will trigger an exemption.