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Changes to the First Home Owner Grant and stamp duty
Published on 06 March 2017
Note: This news page was published on 6 March 2017 in relation to changes introduced by the State Taxation Acts Amendment Act 2017 and may not reflect later changes that have been introduced.
This page outlines the following:
- New stamp duty measures for first-home buyers
- Changes to the FHOG
- Special FHOG exemption for Defence Force personnel
- Changes to off-the-plan concessions
- Tax on vacant property
New stamp duty measures for first-home buyers
Stamp duty (land transfer duty) for first home buyers purchasing a home with a dutiable value of not more than $600,000 has been abolished for contracts entered into from 1 July 2017.
This will make the existing first-home buyer 50% 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.
First Home Owner Grant changes for regional Victoria
The First Home Owner Grant (FHOG) has been increased from $10,000 to $20,000 for new homes built in regional Victoria and valued up to $750,000.
This applies for contracts signed from 1 July 2017 to 30 June 2020.
Eligible first-home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 FHOG.
For more information about the FHOG, please check your eligibility.
Special exemption for Defence Force personnel
Victorian members of the Australian Defence Force will receive a special exemption under the First Home Owner Grant (FHOG). The exemption applies to current members of the Australian Army, Air Force or Navy who are enrolled to vote in Victorian elections and are either on duty or leave. The exemption does not apply to Australian Army, Air Force or Navy reservists or to Australian Public Service staff.
Changes to the off-the-plan concession
The off-the-plan concession has been revised and now only apply to buyers who occupy the property as their principal place of residence (PPR).
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.
This change applies for contracts entered into from 1 July 2017.
Vacant residential property
A vacant residential land tax was introduced on 1 January 2018.