The State Revenue Office offers many concessions and exemptions to various people when they are purchasing a home. It can be very confusing to know what is applicable to you, so we have simplified everything to make it easier to know what is available for you.
The first thing that you need to make note of is the First Home Owner Grant, the First Home Buyer Stamp Duty Exemption/Concession and the Principal Place of Residence concession are all different things.
When buying your first home, one or more of the following may be applicable to you. You can be entitled to more than one of the following at the same time.
Depending on where you live, the type of property and the value, you may be eligible to receive a payment of $10,000 or $20,000 First Home Owner Grant.
If you are buying or building a new home within metropolitan Melbourne, then you are entitled to a $10,000 grant. If you are buying or building a new home within regional Victoria, then you are entitled to a $20,000 grant.
Please note, if you or your spouse/partner has purchased a property previously however, they have not lived in the property as their home, then you and your spouse/partner are still eligible for the First Home Owner Grant.
Depending on your situation, you may be entitled to receive a Stamp Duty exemption or concession.
You are entitled to a one-off Stamp Duty exemption if you purchase a property for the value of $600,000 or less. You are entitled to a one-off Stamp Duty concession if you purchase a property for the value from $600,001 to $750,000.
It does not matter if you purchase a new or established home.
You may be entitled to a duty concession if you are a first home buyer purchasing Off-the-Plan. Purchasing property Off-the-Plan means you are committing to purchasing a property that is not yet built.
The way the concession works for Off-the-Plan is, you pay Stamp Duty based on the dutiable value, which is the contract price minus the construction or refurbishment costs incurred on or after the contract date. This means that you pay duty only on the improved value of the land, the non-deductible costs and the completed construction or refurbishment including GST as at the contract date.
Please note, this concession is not available to a company or a trustee of a trust buying a property off the plan.
If you are an eligible pensioner, you may be entitled to a once-only exemption from duty when you buy a home valued at $330,000 or less, or concession from duty when you buy a home valued from $330,001 to $750,000.
Please note, if you are buying your first home, you may also be entitled to the First Home Owner Duty exemption/concession or the First Home Owner Grant, however, you can only receive the pensioner duty exemption/concession or the duty benefits available to first home buyers in respect of the same transaction. You cannot get both. You must choose to receive one or the other. Whichever you choose, you may still be eligible for the first home owner grant if you are buying your first home.
If you are entitled to the pensioner concession, you will automatically benefit from the duty concession for a principal place of residence. You do not need to claim this concession.
When you purchase a property and you choose to live there, then the property is your principal place of residence. You may be able to benefit from claiming a property as your principal place of residence.
You cannot claim the principal place of residence concession on a holiday home or investment property.
Please note, this concession is available to all home buyers, not just first home owners.
A duty exemption/concession may be available to eligible First Home Buyers with a family.
A full exemption is available where the property’s total value is not more than $150,000. A concession is available where the property’s total value is not more than $200,000.
If you are a young farmer, then you may be eligible for a exemption/concession for buying your first farmland property.
For farmland valued at less than $600,000, eligible farmers may be exempt from duty on the first $300,000. For farmland valued between $600,000 and $750,000, eligible farmers may receive a duty concession.
You must choose between this young farmer exemption/concession or the principal place of residence concession, whichever is worth more to you. You cannot apply for both.