First published 07/05/2012

The Victorian Government may have scrapped the first homebuyer bonus, but stamp duty cuts for first homebuyers are set to increase.

From 1 July first homebuyers in the state will no longer be able to make the most of a $13,000 bonus grant for new properties that cost less than $600,000 (plus an additional $6,500 for buyers in regional areas).

However, the state budget has also committed to increasing stamp duty cuts for first homebuyers from 20% to 30%.

“The provision of $65m to fund the increase of stamp duty cuts for first home buyers from 20 to 30% on 1 January 2013 is welcome, given the severe economic constraints the government faced in this Budget,” said Real Estate Institute of Victoria (REIV) CEO Enzo Raimondo.

“Under the government’s policy, all people buying their first home for less than $600,000 will benefit from stamp duty cuts.

“The Treasurer is committing to a 1.5 per cent improvement in the Gross State Product (GSP) this financial year and 1.75 per cent the next. In light of the very difficult broader economic conditions, it is pleasing that action was taken to ensure the Victorian economy is primed for growth.”