First Home Owner Grant changes for regional Victoria

Posted: 2017-03-29

Double the First Home Owner Grant for New Homes in Ballarat

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 including Ballarat and valued up to $750,000.

About the initiative

For contracts signed between 1 July 2017 and 30 June 2020, the First Home Owner Grant (FHOG) for regional new home purchases will double to $20,000. The increase will help first home buyers to purchase in their local community and will help support construction and employment.

How will it work?

FHOG is currently a $10,000 grant for first home buyers that purchase new homes throughout Victoria including Ballarat. This initiative increases the FHOG to $20,000 for regional new home purchases.

As with the current arrangements, the FHOG will only be available to purchases valued up to $750,000.

The increased FHOG will be applicable to contracts signed from 1 July 2017 to 30 June 2020, at which time, the Government will assess the impact of the policy on first home buyers and construction in regional area.

Who will qualify?

•The increased FHOG will be available for regional first home buyer purchasers of new homes valued up to $750,000.


•The purchaser and the purchaser’s partner must be first home buyers, consistent with the definition under the First Home Owner Grant Act 2000.


•The purchased property must be used as the purchaser(s)’s primary place of residence for a continuous period of 12 months, commencing within 12 months of possession of the purchased property.


•Prospective first home buyers can contact the State Revenue Office on 13 21 61 to find out more about their eligibility.


•The list of regional local councils where first home buyer purchases are eligible for the $20,000 FHOG is provided in Table 1, below.


Additional announcements included stamp duty for first-home buyers, off-the-plan concessions and a tax for vacant residential property.


Abolishing stamp duty for first home buyers

From 1 July 2017, first home buyers purchasing properties valued below $600,000 will be exempt from paying stamp duty. Further, first home purchases valued between $600,000 and $750,000 will receive a concession applied on a sliding scale. It will be available for new and established home purchases.

This initiative gives first home buyers across the state a helping hand, by substantially reducing the upfront cost of purchasing a home.

How will it work?

The exemption and concession are available for new and established home purchases and will be applicable to contracts signed from 1 July 2017.

What are the criteria to qualify for an exemption or concession?

•The home must have a dutiable amount of less than $600,000 to receive a stamp duty exemption.


•A concession applies on a sliding scale for purchases with a dutiable amount between $600,000 and $750,000.


•The dutiable amount of a property is generally the greater of the purchase price or market value, minus any deductions (such as a deduction for an off-the-plan the purchase).


•The purchaser and the purchaser’s partner must be first home buyers, consistent with the definition under the First Home Owner Grant Act 2000.

•The purchaser must be an Australian citizen or permanent resident (New Zealanders holding a special category visa are considered permanent residents if they are in Australia at the time of settlement).

•The purchased property must be used as the purchaser’s principal place of residence for a continuous period of 12 months, commencing within 12 months of possession of the purchased property.


Prospective first home buyers can contact the State Revenue Office on 13 21 61 to find out more about their eligibility.


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