Old Rules

As it currently stands, First Home Buyers are entitled to a 50% discount on the purchase of new and established property within Victoria, for up to $600,000 in value. Currently, for a $600,000 purchase, this represents a $15,535 concession to the First Home Buyers.

The gross duty payable is $31,070 – after the concession is applied, the amount of $15,535 is payable.

To apply for this concession, you need to submit a section 61 duties form (link below) at settlement.
http://www.sro.vic.gov.au/node/179

New Rules

From 1 July 2017, any contracts entered into after this date will have the following rules apply.

For new purchases up to the value of $600,000 – there will be ZERO duty payable. For a new purchase with a dutiable value between $600,000 to $750,000 – there will be a shaded dutiable concession available. The sliding amounts can be seen below

Are there any other concessions available

To encourage First Home Buyers to build or purchase a brand new, off the plan or recently finished property – the existing $10,000 cash grant will remain. This is available for new properties up to the value of $750,000.

The cash grant is released at settlement for the purchase of completed properties once the title has been exchanged. For a house and land build, the cash grant is released during the construction of the property (this varies between lenders and you need to speak with your Mortgage Broker in consideration with the wording of the building contract)

From 1 July 2017, the First Home Owners Grant will increase to $20,000 for the purchase or construction of new properties in regional Victoria, for a list of the qualifying areas click this link http://www.sro.vic.gov.au/node/5815 . This is available for properties up to the value of $750,000.

The new changes by the Victoria government will assist First Home Buyers who are looking to get into their first property but are struggling to get together a sufficient deposit.