The Victorian opposition has unveiled a bold plan to scrap stamp duty for first home buyers on all properties—established or off-the-plan—valued up to $1 million, in a policy designed to revive home-ownership for young Victorians.
Shadow Treasurer James Newbury will make the announcement a centrepiece of today’s Budget Reply speech, declaring stamp duty “one of the most punitive taxes in the country”.
Under the proposal, first home buyers would pay zero stamp duty on purchases up to $1 million—a tax relief worth an average of $40,000 on a $750,000 home.
According to the Parliamentary Budget Office, more than 17,000 first home buyers would claim exemptions in the plan’s first full year, injecting confidence into a property market that critics say has been stifled by high upfront costs.
“Under Labor, young Victorians are being taxed out of a future,” said Opposition Leader Brad Battin.
“After a decade of economic vandalism under Labor, this is the circuit-breaker Victoria desperately needs.”
Shadow Treasurer Newbury argued that the policy would remove “one of the biggest barriers” for renters stuck in the private market. “This is about rewarding aspiration and giving young Victorians the final leg up they need,” he said.
“Labor has introduced 61 new or increased taxes in 10 years—30 of them on property. We say enough is enough.”
The first home buyers’ duty exemption would apply immediately on passage, with a legislated sunset, though no end date has yet been specified. Proponents argue that by cutting stamp duty, the policy will help individuals and stimulate broader economic activity by unlocking transactions stalled by high transaction costs.
Housing affordability advocates have long called for reform of Victoria’s stamp duty regime. Unlike other states that offer concession-based schemes or land tax alternatives, Victoria remains heavily reliant on upfront duties, which can amount to tens of thousands of dollars on a typical mortgage.
Labor Treasurer Jaclyn Symes has so far defended the status quo, pointing to recent expansions of stamp duty concessions for off-the-plan purchases and first home buyers. The government’s 2025–26 Budget extended a measure that has saved buyers an average of $24,517, but only through October 2025 and subject to property-value caps.
Critics of the opposition’s plan warn of significant revenue losses—stamp duty raises more than $10 billion annually for the state—and urge a thorough cost-benefit analysis. However, the Liberals and Nationals insist the long-term boost to the economy and the social dividends of increasing home ownership will more than offset short-term fiscal impacts.
“First home buyers aren’t asking for a handout—they just want a fair go,” Newbury added.
“By cutting this tax, we’re restoring hope and making home ownership possible again.”
The government is expected to respond this afternoon, setting the scene for a heated debate over one of Victoria’s most controversial taxes.
Support our Journalism
No-nonsense journalism. No paywalls. Whether you’re in Australia, the UK, Canada, the USA, or India, you can support The Australia Today by taking a paid subscription via Patreon or donating via PayPal — and help keep honest, fearless journalism alive.
