There has been some positive changes with the concessions available for First Home Owners in Victoria for contracts signed from 1st July 2017.

  1. Stamp Duty will be exempt for any eligible First Home Owner on the their property purchase up to $600,000. If the property is more than $600,000 but no more than $750,000, the concession on the stamp duty will be applied on a sliding scale. To be eligible you will have to satisfy the requirements for the First Home Owner Grant (FHOG) except that the property could be an established property (as opposted to newly built).
  2. The FHOG available for new homes built in regional areas of Victoria (refer to http://www.sro.vic.gov.au/regional for the eligible councils) and valued up to $750,000 has increased from $10,000 to $20,000. This applies to all contracts signed from 1st July 2017 to 30th June 2020. FHOG for new homes in metropolitan Melbourne will continue to receive $10,000.
  3. The eligibility requirement for FHOG is as follows:

    1. Not owned a home before
      1. You, or your spouse/partner must have not received FHOG previously
      2. Owned a home in Australia, either jointly or separately before 1st July 2000,
      3. Lived in a home in Australia in which either of you owned or part owned on or after 1st July 2000 for a continuous period of at least 6 months;
    2. Must be at least 18 at settlement or completion of construction (Commissioner’s discretion is possible for this requirement);
    3. At least one of the applicant must be an Australian citizen or permanent resident (as well as some New Zealanders holding a special category visa with other conditions);
    4. Must intent to live in the property as your principal place of residence for at least 12 months (exemption applies to some Australian Defence Force Personnel);
    5. This is good news for the First Home Owners, in particular the stamp duty exemption for properties under $600,000. Note at $600,000, the stamp duty exemption provides an overall saving of approximately $31,000, or a further saving of approximately $15,000 (a 50% reduction of stamp duty was available to first home owners prior to 1st July 2017)