Open letter on stamp duty and first home buyers from REIV CEO

23-Jun-2010

Victoria has one of the strongest economies in the nation and we should take advantage of that by helping first home buyers in the same way as four other states: give first home buyers a 100 per cent discount on stamp duty for an average home.

There is a direct link between the assistance offered to first home buyers and their ability to get a start in the market. Since the stimulus was withdrawn, first home buyers in Victoria have dropped from 30 per cent of the market to around 18 per cent.

Abolishing stamp duty for first home buyers does not need to cost as much as has been suggested. The intergovernmental agreement that established the $7,000 grant allows stamp duty to be offset with the grant.

Given the importance of promoting home ownership and improving affordability for first home buyers, this debate should not be left to the state election; the Treasurer should disclose how much it will cost so Victorians can compare the costs, benefits and options.

Source: REIV