A first-home buyer in Victoria purchases a newly built home valued at $600,000. Which government concession or grant are they most likely eligible for?

Q: What is the correct answer to: A first-home buyer in Victoria purchases a newly built home valued at $600,000. Which government concession or grant are they most likely eligible for?

The correct answer is First Home Owner Grant (FHOG) for new homes and a land transfer duty concession or exemption. Eligible first-home buyers of new homes in Victoria can receive the FHOG ($10,000) and qualify for a land transfer duty exemption (properties up to $600,000) or concession ($600,001-$750,000). Both incentives are administered by the State Revenue Office and can apply to the same transaction.

Q: What background knowledge is needed for this Finance Taxation question?

Victoria's first-home buyer support includes the FHOG ($10,000 for new homes under the price cap), land transfer duty exemptions for new and established homes under $600,000, and concessions for properties between $600,001-$750,000. These incentives aim to improve housing affordability and are subject to eligibility criteria including residency requirements.

Q: What is a good way to remember the answer to this Finance Taxation question?

First-home buyers get TWO benefits: FHOG grant ($10K for new homes) PLUS duty exemption/concession. Both from the SRO. Remember 'grant plus duty relief'—first-home buyers in VIC can access both incentives simultaneously.

Q: What exam tip applies to this Finance Taxation question?

VIC first-home buyers can receive both the FHOG (new homes) and duty relief—know the price thresholds for each.

Q: How does this Finance Taxation concept apply in Australian real estate practice?

A first-home buyer purchases a new townhouse in Craigieburn for $580,000. They receive the $10,000 FHOG and a full land transfer duty exemption (property under $600,000), saving approximately $31,000 in duty. Both are applied for through the State Revenue Office.

Question

Finance TaxationVICMEDIUM

A first-home buyer in Victoria purchases a newly built home valued at $600,000. Which government concession or grant are they most likely eligible for?

Answer Options

A

Full exemption from land transfer duty and the First Home Owner Grant (FHOG)

B

First Home Owner Grant (FHOG) for new homes and a land transfer duty concession or exemption

C

A 50% reduction in land tax for the first five years

D

A government-guaranteed mortgage with no deposit required