Melbourne home buyers are set to get relief from stamp duty in Tuesday's state budget, The Age newspaper has reported.
The stamp duty reduction is aimed to make it easier for first-time buyers to get their own home, the newspaper said.
The government is known to have considered options including reducing the stamp duty payable on lower-priced houses, or exempting first-home buyers from stamp duty houses in the lower price ranges, or exempting first-home buyers from paying stamp duty on houses below a set value.
At present, stamp duty is charged whenever real estate is sold, and includes a percentage of the sale price with a set fee on top.
The median Melbourne house price of about $432,500 would attract about $19,000 in stamp duty, including a base duty of $16,810 and 6 per cent of the sale value over $400,000.
The Age report said Treasurer John Lenders would also announce cuts to business charges, such as controversial land tax and a fifth straight reduction in WorkCover premiums for employers.
The budget, the first for Mr Lenders as treasurer and the Labor government's ninth, will be one of restraint in the face of slowing economic growth.
The use of strong surpluses and a reliance on debt to fund infrastructure is expected to be a feature of the budget.
Mr Lenders said Victoria's economy was expected to grow 3.75 per cent this financial year, but he warned that figure may be reduced following several interest rate rises.
"This will be a disciplined budget, relevant to Victoria in the year 2008, and with a forward vision for where Victoria needs to go, particularly in times where growth has slowed," Mr Lenders said.
The government has predicted a $842 million surplus for the 2007-08 year.
Net debt has increased to $7 billion and is expected to rise to almost $20 billion in the next four years.
"With a modest debt level, using our surplus well, what we've managed to do is quadruple our expenditure on infrastructure as well as deliver services, so that'll continue to be our focus," Mr Lenders said.
He has flagged a family and business-friendly budget with a focus on education and health.
More than $550 million for school maintenance has been announced, along with a $135 million rural health package and $150 million for the fight against cancer.
Climate change is expected to feature and the coal power industry will get a $127 million boost for research into carbon capture and storage technology.
Tax relief is expected for businesses.
The Victorian Employers' Chamber of Commerce and Industry has called for cuts to WorkCover premiums and relief in land and payroll tax.
Based on mid-year figures, Victorians can expect to pay $3.5 billion in stamp duty this financial year, $3.7 billion in payroll tax and $1.5 billion in gambling taxes, including almost $1 billion through poker machines
