Victorian Budget Favours Some Real Estate Owners

The new 2013-14 Victorian State Budget contains measures that will help all real estate owners - but some will receive more support than others.

This is according to Real Estate Institute of Victoria (REIV) president Enzo Raimondo, who asserted that the measures taken to boost overall economic activity - which will result in projected lower employment levels and an increased real gross state product - will benefit homeowners on the whole.

But changes to a number of key grants - including the abolition of the First Home Owners Grant for existing properties - could see some first home buyers worse off, especially as the new stamp duty cuts do not completely compensate for this change.

Mr Raimondo explained: "The acceleration of the stamp duty cuts to 40 per cent does not cover the cost to the majority of first home buyers of the grant's abolition. The state government should have matched the cuts in the grant with further reductions in stamp duty."

Instead, he suggested that stamp duty cuts should be increased progressively, until they reach 100 per cent for first home buyers. This, along with "an improved economy and adequate levels of dwelling supply", would provide greater support to those who are new to the real estate market.

The overall property taxation system, he added, is in "urgent need of reform" - particularly land tax, property taxes and stamp duty.