As the landscape of Victoria’s property market evolves, the state government has introduced a series of legislative reforms aimed at enhancing housing affordability and accessibility. At Nelson Alexander, we’re committed to keeping you informed about these changes and how they can impact your property journey.
Key Legislative Changes
Short-Stay Levy
A new 7.5% levy on short-term rentals, such as Airbnb, will be implemented in early 2025. This initiative encourages property owners to consider long-term rental options, helping to address the ongoing housing demand. The levy is expected to generate approximately $60 million annually for essential social housing projects, particularly in regional areas where the need is greatest. With thousands of short-term rentals operating in Victoria, this reform aims to increase the availability of long-term rental properties, benefitting the community as a whole.
Regulations for Short-Stay Rentals
Owners' corporations now have the authority to vote on restricting or banning short stays within their apartment complexes, contingent on 75% of owners agreeing. This empowers communities to shape their living environments, fostering a harmonious atmosphere for all residents while potentially enhancing property values.
Planning Reforms
The government is streamlining planning restrictions in high-density zones, especially around transport hubs. This change is designed to facilitate the development of new homes in sought-after locations, making them more attractive to potential buyers. Faster approval processes are expected to lead to a significant increase in housing stock, addressing the supply-demand imbalance.
Major Cuts to Off-the-Plan Stamp Duty
To stimulate housing supply, the Victorian Government has introduced significant reductions to stamp duty on off-the-plan properties, effective for a period of 12 months. This temporary concession eliminates the previous price cap, making all buyers—including investors—exempt from stamp duty on eligible properties at any price point. During this time, only land tax will be payable, significantly lowering the barriers to homeownership. For instance, a buyer purchasing a $620,000 apartment off-the-plan could save around $28,000 in stamp duty, paying approximately $4,000 instead of the usual $32,000.
Important Dates to Keep in Mind
January 1, 2025: Commencement of the 7.5% short-stay levy.
2024–2034: Ongoing commitment to constructing 800,000 new homes across Victoria.
October 21, 2024: Implementation of the temporary stamp duty concession for off-the-plan properties.
What could it mean for you?
For Homeowners: Staying informed about new regulations regarding short-stay rentals is essential. If you’re contemplating renting your property, understanding these changes can help you make informed decisions that benefit both your investment and your neighbours.
For Buyers & Investors: The revised off-the-plan stamp duty concessions may bring more first-time buyers into the market, potentially impacting your investment strategies. Keeping a close eye on these developments will be crucial as you navigate the changing landscape.
For the latest updates and in-depth information on important legislative changes, we encourage you to visit the Victorian Government and State Revenue Office websites.
We’re committed to guiding you through the evolving property market and ensuring you have the insights needed to make confident real estate decisions–so please reach out to your local Nelson Alexander agent if you have any questions.
If you have any questions about how this could affect you, please contact your local Nelson Alexander office.
