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 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 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.
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 off-the-plan concession has been retargeted 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.
A vacant residential property tax (VRPT) will be introduced from 1 January 2018.
