MORE than offering financial security and emotional well-being, home ownership is a cornerstone of a strong and thriving community. However, while the current housing landscape is fraught with challenges that impede first home buyers and builders from entering the market, there are a range of both state and federal government incentives designed to offer support.
From grants for first-time purchasers to tax benefits for investors, the initiatives listed below not only intend to make homeownership more attainable but aim to stimulate the construction industry itself.
State Government incentives
First Home Owner Grant (FHOG)
Overview: A grant for first-time home buyers purchasing or building a new home.
Amount: Up to $10,000.
Eligibility: Must be a first home buyer, over 18 years old, and meet residency requirements.
Victorian homebuyer fund
Overview: A shared equity scheme that helps first home buyers by covering part of the deposit.
Eligibility: Income caps apply; applicants must be first home buyers purchasing a new or existing home.
First Home Buyer duty exemption/reduction
Overview: Provides exemptions or reductions on stamp duty for eligible first home buyers.
Eligibility: Full exemption for properties valued up to $600,000; reduced rates for properties valued up to $750,000.
Energy efficiency incentives
Overview: Rebates for homeowners and builders investing in energy-efficient solutions, such as solar panels.
Details: Specific eligibility requirements apply based on the program.
Building and renovation incentives
Overview: Financial support for renovations that improve energy efficiency or overall property value.
Details: Check local government resources for current offerings.
Recent Victorian Government announcements
a. Overview: Stamp duty to be slashed on all off-the-plan apartments, units and townhouses to cut upfront costs and to speed up building.
b. Eligibility: Taking immediate effect from October 21, the temporary stamp duty concession is no longer capped to specific price points or first-home buyers – now, all buyers are stamp-duty exempt for eligible properties at any price point.
In a space to watch: Premier Jacinta Allan recently announced that her Labor Government intends to make it easier for Victorians to divide their blocks to build more homes across every corner of the state. The announcement was made at a recent press conference, with the Premier stating, “This just makes sense: if you’ve got land you don’t need – we’ll make it easier for you to subdivide it and sell it, putting money back in your pocket and giving another Victorian the chance to buy their own home.” In a space to watch: Premier Jacinta Allan recently announced that her Labor Government intends to make it easier for Victorians to divide their blocks to build more homes across every corner of the state. The announcement was made at a recent press conference, with the Premier stating, “This just makes sense: if you’ve got land you don’t need – we’ll make it easier for you to subdivide it and sell it, putting money back in your pocket and giving another Victorian the chance to buy their own home.”
Federal Government Incentives
First Home Loan Deposit Scheme (FHLDS)
Overview: Allows eligible first home buyers to purchase a home with a deposit as low as 5 percent without paying Lenders Mortgage Insurance (LMI).
Eligibility: Income caps apply; applicants must be Australian citizens and first home buyers.
Capital Gains tax exemption for main residence
Overview: Homeowners can potentially exempt capital gains tax on the sale of their primary residence.
Eligibility: Must meet the criteria for a main residence as defined by the Australian Tax Office (ATO).
Tax deductions for investment properties
Overview: Investors can claim tax deductions on various costs associated with owning investment properties, such as depreciation and maintenance.
Details: Consult a tax professional for specific advice related to investment properties.
Energy efficient homes package
Overview: Federal incentives aimed at improving energy efficiency in homes, including rebates and tax offsets.
Eligibility: Specific programs may vary, and eligibility criteria apply.
