Victorian Property Grants & Incentives for 2026
Short answer: the main Victorian property grants and incentives in late 2026 are the first home buyer duty exemption and concession, the $10,000 First Home Owner Grant for new homes, the principal place of residence duty concession, and a temporary off the plan duty concession for strata apartments and townhouses. First home buyers pay no duty on homes up to $600,000 and reduced duty up to $750,000 [1]. The Australian Government's 5% Deposit Scheme also applies in Victoria, with price caps of $950,000 in Melbourne and regional centres [2]. Some older schemes, like the Victorian Homebuyer Fund, have closed [3]. Our buyers agent service for Melbourne and Victoria helps you use the ones you qualify for.
TL;DR
First home buyer duty: none up to $600,000, reduced from $600,001 to $750,000 [1].
First Home Owner Grant: $10,000 for eligible new homes up to $750,000 [4].
Owner occupier concession: homes up to $550,000 [5].
Off the plan: temporary concession for strata homes, contracts before 21 April 2027 [6].
5% Deposit Scheme caps: $950,000 or $650,000 depending on location [2].
In this article
First home buyer duty exemption and concession
First Home Owner Grant
Principal place of residence concession
Off the plan concessions
The 5% Deposit Scheme in Victoria
Closed schemes
Costs that incentives do not cover
A worked example
Incentives summary
FAQs, recommended reading and references
First home buyer duty exemption and concession
If you buy a Victorian home with a dutiable value up to $600,000 you pay no land transfer duty, and from $600,001 to $750,000 you pay a reduced amount [1]. It applies to new or established homes and to vacant land for building your first home. All buyers must be natural persons aged at least 18, at least one must be an Australian citizen, New Zealand citizen or permanent resident, and at least one must live in the home for 12 continuous months starting within 12 months of settlement [1]. In 2024 to 25 there were 42,208 first home buyer duty concession payments in Victoria, worth $825.6 million [7]. Buyers with a family purchasing a property up to $200,000 may qualify for a separate family exemption or concession [8].
First Home Owner Grant
The Victorian First Home Owner Grant is $10,000 for eligible new homes valued up to $750,000 [4], a rate that has applied since 1 July 2013 [9]. The home must be new and not previously sold or occupied, and you must live in it for at least 12 months starting within 12 months of settlement or completion [4]. Most people apply through their bank or another approved agent [4].
Illustrative image: grants and duty savings can make a first new home more affordable.
Principal place of residence concession
Any buyer, not just first home buyers, may receive a duty concession on a home valued up to $550,000 that they live in for 12 straight months [5]. The SRO's example: a $550,000 house attracts $24,970 in duty instead of $28,070, a saving of $3,100 [5]. Above $550,000 the concessional rate does not apply [10], and general rates apply: $2,870 plus 6 percent of the value over $130,000 up to $960,000 [11].
Off the plan concessions
A temporary off the plan duty concession applies to apartments, units and townhouses in strata subdivisions with common property, for contracts entered from 21 October 2024 and before 21 April 2027 [6]. It lets the buyer deduct construction costs incurred after the contract date from the dutiable value, applies to all buyers including investors, and has no value cap [6]. It does not reduce foreign purchaser additional duty [6], which is 8 percent [12]. Off the plan deposits are capped at 10 percent, and you can end the contract if the plan of subdivision is not registered in time [13].
The 5% Deposit Scheme in Victoria
The Australian Government 5% Deposit Scheme lets eligible buyers purchase with a 5 percent deposit without lenders mortgage insurance, with no income caps [14]. In Victoria, price caps are $950,000 for the capital city and regional centres and $650,000 elsewhere, and both the price and the lender's valuation must be at or below the cap [2]. Our first home buyer support helps you check how the scheme and Victorian concessions work together.
Closed schemes
The Victorian Homebuyer Fund, a shared equity scheme in which the government contributed up to 25 percent of the price, is closed to new participants [3]. Older articles may still mention it, so always check the SRO's current pages before relying on any incentive, or ask about it in a strategy session.
Costs that incentives do not cover
Consumer Affairs Victoria suggests budgeting for legal fees, loan fees, inspections, moving and ongoing costs like council rates [15]. Investors face land tax once taxable land exceeds $50,000 [16], and vacant residential land tax can apply to homes left empty [17]. Private sales usually include a three business day cooling off period [18], and from 1 October 2026 agents must disclose reserve prices 7 days before auction [19]. With the cash rate at 4.60 percent [20] and lenders testing at a 3 percentage point buffer [21], plan for a deposit and buying costs [22]. Victoria's population grew 1.6 percent in the year to March 2026 [23], so well priced homes still attract competition. For personal advice, see a licensed adviser [24].
A worked example
Consider a hypothetical first home buyer in Melbourne comparing an established apartment at $580,000 with a new townhouse at $720,000. The apartment is under $600,000, so no duty applies [1]. The townhouse attracts reduced duty but may qualify for the $10,000 grant [4], and both are under the 5% Deposit Scheme cap for Melbourne [2]. After inspections and comparing levies, the buyer weighs total cost, location and long term demand, with help from our buyers advocate service. Eligibility must be confirmed with the SRO and a participating lender. This example is illustrative only.
Incentives summary
Incentive | Key limit |
|---|---|
First home buyer duty | No duty to $600,000; reduced to $750,000 [1] |
First Home Owner Grant | $10,000, new homes to $750,000 [4] |
PPR concession | Homes to $550,000 [5] |
Off the plan concession | Strata homes, contracts before 21 April 2027 [6] |
5% Deposit Scheme | $950,000 or $650,000 caps [2] |
Victorian Homebuyer Fund | Closed [3] |
Victorian incentives at a glance.
FAQs
Can I get the grant and the duty exemption together?
Possibly, if you buy an eligible new home within both limits. Check eligibility with the SRO [4] [1].
Do investors get any Victorian incentives?
Yes. The temporary off the plan concession is open to investors [6].
Is the Victorian Homebuyer Fund still open?
No. It is closed to new participants [3].
Get help with Victorian incentives
Book a free strategy call, explore our property search service and due diligence process, or meet our Brisbane buyers agents, who also help interstate buyers.
Recommended reading
References
State Revenue Office Victoria, First home buyer duty exemption or concession. Supports: First home buyers pay no duty on homes with a dutiable value up to $600,000 and a reduced amount from $600,001 to $750,000; new or established homes or vacant land; must live there 12 continuous months within 12 months of settlement.
Housing Australia, 5% Deposit Scheme property price caps. Supports: Victorian price caps: $950,000 for the capital city and regional centres and $650,000 for other areas; both purchase price and lender valuation must be at or below the cap.
State Revenue Office Victoria, Victorian Homebuyer Fund. Supports: The Victorian Homebuyer Fund shared equity scheme is closed to new participants; it allowed a 5 percent deposit with a government contribution of up to 25 percent.
State Revenue Office Victoria, Understanding the First Home Owner Grant. Supports: $10,000 grant for eligible first home buyers buying or building a new home in Victoria worth up to $750,000; must live in it for at least 12 months starting within 12 months.
State Revenue Office Victoria, Principal place of residence duty concession. Supports: Concession for homes valued up to $550,000 used as the buyer home for 12 straight months; example: a $550,000 house saves $3,100 ($24,970 instead of $28,070).
State Revenue Office Victoria, Strata apartments and townhouses temporary concession. Supports: Temporary off the plan concession for dwellings in strata subdivisions with common property, contracts from 21 October 2024 and before 21 April 2027; deducts construction costs after the contract date from dutiable value; available to all buyers including investors; no value threshold.
State Revenue Office Victoria, First home buyer duty concession by year. Supports: 42,208 first home buyer duty concession payments worth $825.6 million in Victoria in 2024 to 25, up from 41,793 in 2023 to 24; 9,644 were regional.
State Revenue Office Victoria, Help to buy a property. Supports: Summary of Victorian first home buyer duty savings, the $10,000 First Home Owner Grant and the principal place of residence concession up to $550,000.
State Revenue Office Victoria, First Home Owner Grant (current rates). Supports: The grant is $10,000 for eligible new homes valued up to $750,000; this rate commenced on 1 July 2013.
State Revenue Office Victoria, Land transfer duty, principal place of residence (current rates). Supports: PPR concessional rates apply up to $550,000; above $550,000 general rates apply.
State Revenue Office Victoria, Land transfer duty, non principal place of residence (current rates). Supports: General rates from 1 July 2021: $2,870 plus 6 percent of value over $130,000 up to $960,000; 5.5 percent of value from $960,000 to $2,000,000; premium rate above $2,000,000.
State Revenue Office Victoria, Foreign purchaser additional duty (current rates). Supports: Foreign purchaser additional duty is 8 percent for contracts on or after 1 July 2019.
Consumer Affairs Victoria, Buying off the plan. Supports: Deposit for off the plan purchases is no more than 10 percent; buyer can end the contract if the plan of subdivision is not registered by the contract time or the default 18 months.
Housing Australia, 5% Deposit Scheme frequently asked questions. Supports: Minimum 5 percent deposit (2 percent for single parents), no income caps, unlimited places, no LMI; first home buyers or no home or land owned in Australia in the last 10 years.
Consumer Affairs Victoria, Planning to buy property. Supports: Budget for legal fees, loan fees, land transfer duty, inspections and ongoing costs such as council rates and land tax; consider interest rate rises.
State Revenue Office Victoria, Costs of buying and owning a property. Supports: Land tax applies when total taxable land value exceeds $50,000 for individuals; home is exempt; vacant residential land tax applies to residential land vacant more than 6 months in a calendar year.
State Revenue Office Victoria, Vacant residential land tax (current rates). Supports: VRLT is 1 percent of capital improved value in the first year, 2 percent in the second and 3 percent for three or more consecutive years.
Consumer Affairs Victoria, Buying property by private sale. Supports: Three business day cooling off for residential private sales; offers can be conditional on finance, sale of another property or inspections; sellers must have the due diligence checklist at open inspections.
Consumer Affairs Victoria, Understanding property prices and underquoting for buyers. Supports: From 1 October 2026 agents must disclose the seller reserve price 7 days before auction, publish the final sold price, and use the new Property Price Statement; underquoting is illegal.
Reserve Bank of Australia, Cash rate target. Supports: Cash rate target 4.60 percent effective 30 September 2026, after rises on 4 February, 18 March and 6 May 2026 (from 3.60 percent).
Australian Prudential Regulation Authority, APRA maintains current macroprudential policy settings in highly uncertain environment (28 May 2026). Supports: Mortgage serviceability buffer remains at 3 percentage points; high debt to income lending limits unchanged; the buffer helps new borrowers cope with higher expenses and rates.
Moneysmart (ASIC), Buying a house. Supports: A good deposit goal is 20 percent of the price plus buying costs such as stamp duty, legal fees and inspections; 20 percent can help avoid mortgage insurance.
Australian Bureau of Statistics, National, state and territory population, March 2026. Supports: Victoria population 7,154,200 at 31 March 2026, up 109,500 (1.6 percent) over the year.
Moneysmart (ASIC), Choosing a financial adviser. Supports: Advisers usually give personal advice tailored to your objectives and situation; understand general versus personal advice; not all advisers offer the same services.
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