First Home Buyer Benefits Victoria: Every Grant and Concession in 2026

Victoria's first home buyer support landscape has changed significantly heading into 2026 — one state scheme has closed, a major federal scheme has launched, and a stamp duty concession that previously only applied to some buyers now applies to almost all. Here is a comprehensive overview of every benefit available and how they interact.

1. The First Home Owner Grant (FHOG): $10,000

The First Home Owner Grant is a direct, tax-free $10,000 payment from the Victorian Government to eligible first home buyers.

Key eligibility requirements:

• You must be purchasing or building a new home — the grant does not apply to established properties that have previously been occupied as a residence
• The property must be valued at $750,000 or less
• At least one applicant must be an Australian citizen or permanent resident
• At least one applicant must be aged 18 or over
• All applicants must be first home buyers (you have never previously owned or co-owned residential property in Australia)
• At least one applicant must occupy the home as their principal place of residence for a continuous 12 months, commencing within 12 months of settlement or completion of construction

The definition of "new home" is strict. It includes brand-new houses, townhouses, apartments, off-the-plan properties, and homes built to replace demolished structures. Substantially renovated homes may qualify if they meet stringent SRO criteria. Established homes — any property that has previously been occupied as a place of residence, leased, or used for short-term accommodation like Airbnb — do not qualify.

The $10,000 grant is consistent statewide. There is no longer a larger regional grant; the flat $10,000 applies everywhere in Victoria.

How it is paid: The grant is paid at settlement for new homes being purchased, or at the first progress payment for homes being built. It is typically applied directly to the settlement funds.

2. Land Transfer Duty Exemption and Concession

This is the most financially significant first home buyer benefit in Victoria — far more valuable than the $10,000 FHOG for most buyers.

Full exemption below $600,000: Zero stamp duty on properties valued at $600,000 or less. This saves roughly $31,000 compared to the standard rate for a purchaser at the threshold.

Tapered concession from $600,001 to $750,000: The discount slides proportionally. At $625,000, the duty is approximately $5,428 (versus $32,570 at standard rates). At $700,000, the discounted amount is approximately $24,713. At $750,001 or above, no concession applies and full standard duty is payable.

Unlike the FHOG, the stamp duty exemption applies to both new and established properties. There is no residency requirement timeline in the same sense, though the property must be your principal place of residence.

3. The Off-the-Plan Stamp Duty Concession (Available to 20 April 2027)

A separate concession applies to off-the-plan purchases of apartments, units, and townhouses in strata subdivisions. Under this concession, dutiable value is calculated only on the land value at contract date, not the full purchase price. All outstanding construction and refurbishment costs are deducted.

For a first home buyer, this concession can be stacked with the duty exemption. If an apartment priced at $620,000 has $480,000 in outstanding construction costs, the dutiable value is just $140,000 — attracting zero duty under the $600,000 first home buyer threshold.

This is the most powerful tax saving available to first home buyers purchasing new apartments or townhouses. It is available until 20 April 2027.

4. The First Home Guarantee (Federal)

The First Home Guarantee allows eligible first home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance (LMI). The Australian Government guarantees up to 15% of the property value, bringing the effective LVR to 80% in the bank's assessment.

Key changes from October 2025:

• Annual place limit removed — unlimited places now available
• Income caps abolished — no income limits
• Property price caps remain: $950,000 in Melbourne and Geelong, $650,000 for the rest of regional Victoria

The First Home Guarantee is available for both new and established properties, and it applies through participating lenders rather than through the government directly. For most Victorian first home buyers, this is the most broadly accessible scheme in 2026 — no income restriction, sufficient price headroom in Melbourne, and a meaningful reduction in the deposit required.

LMI on a $600,000 purchase with a 10% deposit typically costs $8,000–$15,000. The First Home Guarantee eliminates this cost entirely at the 5% deposit level.

5. Help to Buy (Federal Shared Equity Scheme)

The federal Help to Buy scheme launched on 5 December 2025, replacing Victoria's now-closed Victorian Homebuyer Fund.

Under Help to Buy, the Australian Government contributes:

• Up to 40% of the purchase price for new homes
• Up to 30% of the purchase price for existing homes

The minimum deposit from the buyer is 2%. LMI is not charged because the government's equity reduces the effective LVR.

Income limits are strict:

• Individual applicants: maximum $100,000 annual taxable income
• Couples and single parents: maximum $160,000 annual taxable income

Property price caps in Victoria:

• Melbourne and Geelong: $950,000
• Rest of regional Victoria: $650,000

The government holds an equity share proportional to its contribution. When you sell, the government receives its proportional share of the proceeds (including capital gains). You can buy out the government's equity progressively at current market value.

Help to Buy supports 40,000 households nationally over four years. It is best suited to buyers with stable but modest incomes who want the lowest possible upfront deposit and are comfortable with shared equity mechanics.

6. First Home Super Saver Scheme (Federal)

The First Home Super Saver Scheme (FHSS) allows first home buyers to save for a deposit inside their superannuation fund, where contributions are taxed at a lower rate than regular income.

You can contribute up to $15,000 per year in voluntary contributions, and the maximum releasable amount is $50,000 (plus earnings). If your partner is also eligible, you can each release up to $50,000, for a combined $100,000 toward a deposit.

The FHSS is not a grant — it uses your own money. The benefit is the tax difference between the super contribution tax rate (15%) and your marginal income tax rate, which accelerates your savings. For someone on a marginal rate of 32.5%, the tax saving on $15,000 in contributions is approximately $2,625 per year.

Applications to release FHSS funds must be made before signing a contract, and the funds typically take 15–20 business days to be released from the ATO. Timing is important, particularly in auction markets where contracts are unconditional.

How the Benefits Stack

The right combination depends on what you are buying:

New home under $750,000 in a growth corridor:

• First Home Owner Grant: $10,000
• Stamp duty exemption/concession (if under $600K): zero duty
• First Home Guarantee: 5% deposit, no LMI

Off-the-plan apartment in Melbourne:

• Off-the-plan stamp duty concession (reduces dutiable value)
• First home buyer duty exemption (potentially zero duty after concession)
• First Home Guarantee or Help to Buy (depending on income)

Established home under $600,000 in a regional city:

• Zero stamp duty (full exemption)
• First Home Guarantee: 5% deposit, no LMI
• No FHOG eligibility (established property)

The schemes are complementary, not competing, except that the First Home Guarantee and Help to Buy are mutually exclusive — you choose one.

The Victoria First Home Buyer Guide maps every scheme, eligibility requirement, and dollar value in one place — with decision flowcharts to identify which combination suits your income, purchase type, and price point. Get the complete guide at firsthomestartguide.com/au/victoria/first-home/.

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