For contracts entered into on or after 1 July 2013 to build or purchase a new home, a payment of up to $10,000 is available for eligible first home buyers (purchasers of established homes are not eligible for the Grant).
The Grant is only payable where the price of the property or construction of the home does not exceed $750,000. An exception to this requirement is where the contract relates to a home that is on, or to be built on, primary production land.
The Grant is not means-tested.
Victorian first home buyers may also be eligible for Principal place of residence (PPR) concession. The home you purchase must be your principle place of residence (so does not include investment properties). If you intend to live in the home for 12 months beginning at some point within the first 12 months of the contract of sale you may be eligible for duty concessions.
First Home Owner Grant - Regional Victoria
For contracts signed from 1 July 2017 to 30 June 2020 the Victorian Government has announced to increase the First Home Owner Grant from $10,000 to $20,000 for new homes built in regional Victoria and valued up to $750,000.
Off the plan purchases
If you are a first home owner buying an off the plan you may be entitled to a concession. The concession means that you pay duty on the value of the property and construction at the time of the contract date. Normally, construction won't have started or hasn't yet been completed at the date of the contract and so the duty paid is on a lesser amount. First home owners that intend to use their off the plan for investment purposes may still be eligible. From 1 July 2017 only first home buyers who occupy the property as their principal place of residence will be eligible for a concession. Essentially, the off-the-plan concession will only be relevant to determining "dutiable value" for the purpose of the PPR duty concession, the new first-home buyer duty exemption or the new first-home buyer duty phase-in concession.
New stamp duty measures for First Home Buyers in Victoria
The Victorian Government announced it would abolish stamp duty for first home buyers purchasing a home with a dutiable value of $600,000 or less from 1 July 2017. In addition, those purchasing a property worth between $600,000 and $750,000 will receive some form of stamp duty concession. Use this home loan calculator to find out your stamp duty costs.
For more information go to the State Revenue Office Victoria website.