Stamp duty will be abolished for first home buyers purchasing a property valued below $600,000, the Victorian Government says.
From July discounts will also be available for property purchases between $600,000 and $750,000 on a sliding scale, regardless of whether they are new or established homes.
As part of a suite of changes to make housing more affordable, the Government will also introduce a new tax levied at 1 per cent on vacant residential property to target empty properties in Melbourne's inner and middle suburbs.
Owners will be encouraged to make vacant properties eligible for purchase or rent.
There will be exemptions if it is a holiday house, a deceased estate or if the owner is overseas.
"This will send a really strong message to people that if you are effectively banking an empty property and denying that to the market and contributing to the lack of supply, then there's something you can do about it," Premier Daniel Andrews said.
"You can simply pay the tax or you might go see a real estate agent."
Treasurer Tim Pallas said the stamp duty changes would help about 25,000 Victorians purchase their first home.
"We promised we would tackle housing affordability and that's exactly what we are doing," he said.
"Many people aren't looking for mansions.
"They're just looking for that first step on the ladder so they can get a home, a roof over their head, so that they can plan for their family's future."
"It's a really simple, commonsense way in which we can support more young couples into the housing market," the Premier said.
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