2013-14 Budget changes to state taxes and grants
The Victorian Government has announced the following changes to state taxes and grants which will be included in the 2013-14 State Budget when it is handed down on 7 May 2013.
First Home Buyer Grant
From 1 July 2013, the First Home Owner Grant (FHOG) will increase from $7000 to $10,000 for newly constructed homes under $750,000. The increase in the FHOG will apply for first-home buyers who enter into a contract to purchase or build a new home on or after 1 July 2013.
The Government has announced that the existing FHOG on the purchase of an established home will conclude on 1 July 2013. To receive the FHOG on an established home, you must enter into a contract to purchase the home on or before 30 June 2013.
First Home Buyer Duty Reduction
The duty reduction available for eligible first-home owners of both newly constructed and established homes will increase to 40 per cent for contracts entered into on or after 1 July 2013 for homes valued up to $600,000.
Eligible first-home buyers will benefit from a further 10 per cent duty reduction from 1 September 2014, increasing total duty savings for eligible first-home buyers to 50 per cent.