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Why YOU could soon hit with a massive land tax bill as Victoria’s Daniel Andrews targets home owners

Why YOU could soon hit with a massive land tax and stamp duty bills as government targets baby boomer home owners

  • Stamp duty on houses worth $2million is being increased to 6.5 per cent soon 
  • Victoria is increasing land tax for investment homes worth more than $1.8million
  • Treasurer Tim Pallas said investors needed to ‘return’ profits back to community 

Home owners will soon be hit with massive stamp duty and land tax bills as Victoria’s Labor government targets rich baby boomers to pay for the costly Covid lockdowns.

Ahead of the May 20 Budget, Treasurer Tim Pallas has revealed stamp duty on homes worth more than $2million will increase from 5.5 per cent to 6.5 per cent.

This will see the home buyer transfer tax jump from $110,000 to $130,000.

Mr Pallas, who late last year indicated he wanted to get rid of stamp duty, argued investors had profited from soaring property values.

‘It’s only fair that those making large profits return a reasonable proportion to the community,’ he said.

Home owners will soon be hit with massive stamp duty and land tax bills as Victoria’s Labor government targets rich baby boomers to pay for the costly Covid lockdowns. Pictured is an older couple in Melbourne

Land tax is also being increased by 19 per cent on investment residential properties, holiday homes and commercial real estate worth more than $1.8million.

A rise in land tax, from 1.3 per cent to 1.55 per cent, will see landlords who own a $2million house pay $12,475 a year to state coffers, up from $11,975.  

Real Estate Institute of Victoria president Leah Calnan said the land tax measures would hurt baby boomer retirees.

Ahead of the May 20 Budget, Treasurer Tim Pallas has revealed stamp duty on homes worth more than $2million will increase from 5.5 per cent to 6.5 per cent. Houses in upmarket areas like Toorak and South Yarra will incur higher taxes

Ahead of the May 20 Budget, Treasurer Tim Pallas has revealed stamp duty on homes worth more than $2million will increase from 5.5 per cent to 6.5 per cent. Houses in upmarket areas like Toorak and South Yarra will incur higher taxes

‘The Victorian government’s planned assault on property owners with and increases in the 2021-22 state Budget will hurt self-funded retirees and worsen housing affordability,’ she said.

Someone who buys a median-priced Melbourne house to live in, worth $868,676, will continue to pay $35,438 in transfer duty.

Premier Daniel Andrews’s government has flagged revenue-raising measures worth $2.7billion to pay for last year’s coronavirus lockdowns.

Treasurer Tim Pallas, who late last year indicated he wanted to get rid of stamp duty, argued investors had profited from soaring property values. He is pictured left with Premier Daniel Andrews

Treasurer Tim Pallas, who late last year indicated he wanted to get rid of stamp duty, argued investors had profited from soaring property values. He is pictured left with Premier Daniel Andrews

Under this crackdown, developers will pay a windfall gains tax of up to 50 per cent from July 1, 2022 where land has been rezoned.

From January 1 next year, men’s only clubs will be deprived of no longer receive the land tax concession reserved for charities, clubs and associations.

This will see them pay land tax on their landholdings.

Federal Treasury last year estimated the Melbourne-wide lockdown, from early August until late October, cost $1billion a week. 

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