News & Insights
October 20, 2022
If you're a first home buyer in Victoria, you may be eligible for a duty exemption, concession, or reduction. Duty is the tax payable on the transfer of property in Victoria.
For new homes, first home buyers may be eligible for a 50% duty concession on properties valued up to $600,000. If you're purchasing a vacant land lot, you may be eligible for a duty reduction.
To qualify for any of these concessions or reductions, you must meet certain criteria such as being an Australian citizen or permanent resident, over 18 years of age, and never having owned property in Australia before.
You must also occupy the property as your principal place of residence for a continuous period of at least 12 months, commencing within 12 months of settlement. If you're looking to purchase your first home in Victoria, make sure you research the various duty concessions and reductions available to ensure you maximize your savings.
The First Home Owner Grant (FHOG) scheme was introduced to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.
The First Home Owner Grant (FHOG) is a one-time payment of $10,000. Other discounts include stamp duty concessions and the removal of land tax for new homes. There are also a few exemptions from paying GST on newly built homes.
You may be eligible for an FHOG if you are over 18 years of age, have never owned or previously had an interest in a residential property anywhere in Australia, and will live in the home as your principal place of residence for at least 12 months commencing within 26 weeks of settlement.
To apply for the FHOG, you must complete an application form available from the State Revenue Office Victoria website and submit it, together with the required supporting documentation, no later than 12 months after settlement.
If you are looking to buy a home in Victoria, you may be eligible for a land transfer duty waiver. The waiver is available for both new and established homes, and it can save you thousands of dollars on the purchase price.
To be eligible, you must be a first-time buyer or an investor who is buying multiple properties. The waiver is not available for owner-occupied properties. If you meet the eligibility requirements, you will need to apply for a waiver from the Victorian government.
The application process is simple, and it only takes a few minutes to complete. Once approved, the waiver will be valid for 12 months from the date of purchase.
For many people, buying a home is the biggest financial investment they will ever make. The process can be both exciting and overwhelming, especially for first-time buyers. Thankfully, the government of Victoria offers a range of discounts and exemptions to help make the process more affordable.
These discounts can save thousands of dollars and make purchasing a home more within reach. Whether you're looking to buy your first home or investment property, be sure to check if you're eligible for any of these discounts or exemptions.