Victorians pay more stamp duty
Victorian home-buyers are paying out an average of 12.5 per cent more in stamp duty than at the same time last year even though house prices have only risen an average of 10 per cent. The median house price for Melbourne is now $347,000 on which stamp duty payable is $16,480. In May 2002 when the median house price was $316,500 stamp duty was an average $14,650.
In New South Wales, a home buyer purchasing a house at $347,000 would pay $11,105 in stamp duty, $5,375 less than in Victoria. Since December, stamp duty has risen 4.5 per cent but house prices have only increased 3.6 per cent. This is due to the formula used to calculate the tax being subject to “bracket creep”. In Victoria, stamp duty is now taking all of the first home-buyers' grant and more.