The Victorian Government has announced some changes to state taxes and grants which will be included in the 2013-14 State Budget when it is handed down on 7 May 2013.
Please be aware of the following important changes affecting First Home Buyers purchasing residential property in Victoria from 1 July 2013.*
First Home Buyer Grant
From 1 July 2013, the First Home Owner Grant (FHOG) will increase from $7,000 to $10,000 for newly constructed homes under $750,000.
The increase in the FHOG will apply for first-home buyers who enter into a contract to purchase or build a new home on or after 1 July 2013. This includes newly constructed houses and apartments built under a home building contract, built by an owner-builder, purchased off the plan or sold for the first time as residential premises.
The Government has also announced that the existing $7,000 FHOG on the purchase of an established home will conclude on 1 July 2013. To receive the FHOG on an established home, first-home buyers must enter into a contract to purchase the home on or before 30 June 2013.
First Home Buyer Stamp Duty Reduction
The Victorian Government is bringing forward stamp duty cuts of 40 per cent for all first home owners taking effect from 1 July 2013. Currently the concession is 30 per cent for eligible first home buyers purchasing a principal place of residence (PPR) valued at not more than $600,000.
Stamp duty concessions for eligible first home owners (whether newly constructed or established homes) will increase to 40 per cent from 1 July 2013 for homes valued up to $600,000.
Eligible first-home buyers will benefit from a further 10 per cent duty reduction from 1 September 2014 for homes valued up to $600,000, increasing total duty savings for eligible first-home buyers to 50 per cent.
Note the stamp duty concessions are determined by the settlement date not the contract of sale date. (ie, An eligible first home buyer will still be entitled to the 40 per cent duty reduction if they entered into a contract to purchase their first home before 1 July 2013, as long as settlement occurs on or after that date.)
For more information please feel free to contact a First Point Group Consultant for an obligation free discussion.
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*Above details sourced from State Revenue Office Victoria and correct as of 06/05/2013 – http://www.sro.vic.gov.au/first-home-owner