How much first home buyers will save as of the 1st July 2017?
The Victorian Government offers eligible first home buyers a duty reduction when they purchase a new or established home.
Change to the First Home Owners Grant and Stamp Duty Effective 1 July 2017.
The Victorian Government has announced that stamp duty (land transfer duty) will be abolished for first-home buyers purchasing a home with a dutiable value of not more than $600,000.
This will make the existing first-home buyer 50 per cent duty reduction that applies to the purchase of a home with a dutiable value of not more than $600,000 a full exemption.
Further, duty will be phased-in for eligible first-home buyers who purchase a home with a dutiable value between $600,001 and $750,000.
Subject to the passage of the State Taxation Acts Amendment Bill 2017, the new measures will apply for contracts entered into from 1 July 2017.
For contracts signed between 1 July 2017 and 30 June 2020, the First Home Owner Grant (FHOG) for regional new home purchases will double to $20,000. The increase will help first home buyers to purchase in their local community and will help support construction and employment.
FHOG is currently a $10,000 grant for first home buyers that purchase new homes throughout Victoria. This initiative increases the FHOG to $20,000 for regional new home purchases.
First home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 FHOG.
As with the current arrangements, the FHOG will only be available to purchases valued up to $750,000.
The increased FHOG will be applicable to contracts signed from 1 July 2017 to 30 June 2020, at which time, the Government will assess the impact of the policy on first home buyers and construction in regional area.
For more information on the Change to the FHOG and Stamp Duty, please visit http://www.sro.vic.gov.au/housing
For more information on the Regional Areas of Victoria, please visit http://www.sro.vic.gov.au/regional
Other concessions may be applicable to you, please visit the Office of State Revenue site for full details http://www.sro.vic.gov.au
Information current as at March 2017 and is subject to change.
For indicative stamp duty savings, please click the book icon below.