The choice Victorians may soon have when they buy a home

Victorian home buyers could soon have the choice of either paying upfront stamp duty or paying annual land taxes.

The state government is considering the change, which is similar to the system recently introduced in NSW, as part of a package of proposed reforms.

Economic policy and program director at the Grattan Institute, Brendan Coates, says it’s “highly unlikely” home buyers will be worse off under the system.

Press PLAY below to hear how the system would work

“If you allow people to choose then people will choose the thing that best suits their circumstances. So if you expect to hold a property for a short period of time … then you’ll probably choose the land tax and you’ll pay less tax than you would have if you had to pay stamp duty.”