Thursday 22 November 2018
Liberal Nationals to cut stamp duty for pensioners looking to downsize
A Liberal Nationals Government will extend the stamp duty concession for pensioners purchasing a home that could save them as much as $5,200.
This $100 million tax cut will make it cheaper for pensioners to downsize their family homes to a smaller dwelling and it will help create greater supply of more affordable larger family homes for sale.
The current pensioner concession on stamp duty, often used by couples downsizing, currently cuts out at $750,000.
With the average Melbourne house price now $834,000 (REIV September 2018 data), many pensioners looking to downsize from the family home are excluded from this benefit.
A Liberal Nationals government will extend the pensioner stamp duty concession to properties valued up to $950,000.
This change will make it easier and cheaper for pensioners looking to move into more suitable accommodation.
It will also help to free up housing stock for growing families looking to upsize.
Eligible concession card holders who will receive this stamp duty cut are:
- Department of Human Services (DHS) Health Care Card, except the Foster Child Health Care Card (FO or FST) and Carer Allowance Health Care Card (CD),
- Department of Veterans Affairs (DVA) Health Care Card – Gold Card,
- DHS Pensioner Concession Card,
- DVA Pensioner Concession Card,
- DHS Commonwealth Seniors Health Card,
- DVA Commonwealth Seniors Health Card.
The stamp duty cut is expected to save pensioners up to $100 million over four years.
Comments attributable to Shadow Treasurer, Michael O’Brien:
“This Liberal Nationals tax cut delivers a win-win; making it cheaper for downsizing pensioners while boosting housing stock for growing families.
A pensioner couple downsizing to a $915,500 house currently receives zero concession. Under our policy, they will save $5,000.
That money is better in the pockets of pensioners than in the hands of the bureaucracy.
The choice at this election is clear. Tax cuts under the Liberal Nationals or higher taxes under Labor.”