This page outlines the following four Victorian Government announcements:
- New stamp duty measures for first-home buyers
- Changes to the FHOG
- Changes to off-the-plan concessions
- Tax on vacant property
These changes have to be approved by the Victorian Parliament before they can begin. You should only rely on the exact detail of the changes once the legislation is passed. This is likely to be in June 2017.
Our website will be updated with detailed information when it becomes available.
New stamp duty measures for first-home buyers
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.
The new measures will apply for contracts entered into from 1 July 2017.
First Home Owner Grant changes for regional Victoria
The Victorian Government has announced that it intends to increase the First Home Owner Grant (FHOG) from $10,000 to $20,000 for new homes built in regional Victoria and valued up to $750,000.
This will apply 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.
Changes to the off-the-plan concession
The Victorian Government has announced that the off-the-plan concession is being retargeted and will 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 will apply for contracts entered into from 1 July 2017.
Vacant residential property
The Victorian Government has also announced it intends to introduce a vacant residential property tax (VRPT).