First home buyers across regional Victoria are benefitting from stamp duty relief and the doubling of the First Home Owner Grant (FHOG), which came into effect on 1 July.
Talking at a business forum in Portland, the Treasurer Tim Pallas said that the grant, which increased from $10,000 to $20,000 is expected to help up to 6,000 first home buyers and is already having a positive impact on local construction activity in regional Victoria.
The changes from the Andrews Labor Government are making it easier for young people in regional Victoria to build and live in their own community, as well as boosting local construction jobs and development.
The increased grant will be available to first home buyers building new homes valued up to $750,000, and is an additional $50 million investment in regional Victoria over the next three years.
At the same time, the Labor Government is working to make sure people in regional Victoria have the same opportunities as those in metropolitan Melbourne, with the last three budgets delivering the highest regional infrastructure investment on record.
That includes investing in more reliable and frequent public transport, safer roads, better schools and hospitals and creating more local jobs.
The grant will be applicable to contracts signed from 1 July 2017 to 30 June 2020, at which time the Government will review the benefits for first home buyers and businesses in regional Victoria.
As part of its Homes for Victorians package, the Labor Government also abolished stamp duty for all first home buyers purchasing up to $600,000 and with stamp duty cuts on homes up to $750,000.
The exemption and concession will apply to both new and established homes, in a move that is expected to help 25,000 Victorians find their first home.
These changes are part of the Labor Government’s plan to help more Victorians break into the housing market.
Quotes attributable to Treasurer Tim Pallas
“We made these changes to make it easier for young people in regional Victoria to buy and live in their community. While the Federal Government talks about housing affordability, this is what real action looks like.”
“Importantly, we’re not making these changes in isolation. As our regional communities grow, we’re also investing in public transport, local roads, and the schools and hospitals they need.”
Quotes attributable to Forever Homes Managing Director, Michael Hein
“It’s only a few months in but we’re already seeing a notable increase in interest in the construction of new homes, which is great for local businesses and great for local jobs.”
“The doubling of the First Home Owners Grant will help stimulate some consistent longer term growth in our area. It is a smart move by the Government, and gives more of the younger generation an opportunity to build, with a flow on effect for everyone involved.”
Reviewed 19 August 2020