The Victorian Government has announced it will be upping the state’s first home owner’s grant from $7,000 to $10,000 from the beginning of July.

State Treasurer Michael O’Brien said that increase will drive a boom in job creation in the housing construction industry by also providing increased grants for newly constructed homes.

From 1 July 2013 the First Home Owner Grant will increase from $7,000 to $10,000 for newly constructed houses and apartments, including those built under a home building contract, built by an owner-builder, purchased off the plan or sold for the first time as a residential premise.

Mr O’Brien said that the State Government will also bring forward the 40 per cent cuts to the stamp duty.

“Increasing the First Home Owner Grant on newly constructed properties and boosting the stamp duty concession will make the dreams of many young Victorians become a reality sooner,” Mr O’Brien said.

The First Home Owner Grant will increase from $7,000 to $10,000 for eligible newly constructed homes under $750,000 from 1 July 2013.

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.

To offset the significant cost of these new measures, the current First Home Owner Grant for the purchase of established housing stock will conclude on 30 June 2013. This brings Victoria into line with New South Wales, Queensland and South Australia.

However, Victorians purchasing an established property as a first home will be eligible for the new 40 per cent stamp duty concession from 1 July 2013. 

“Targeting the grant to newly constructed homes – whether in regional Victoria, Melbourne’s growth corridors or new CBD apartments – will stimulate the economy and create jobs in the construction sector,” Mr O’Brien said.

From 1 September 2014, all first home buyers (whether purchasing newly constructed or established homes) will benefit from a 50 per cent stamp duty concession.