Victoria's 2026-27 Budget, delivered by Treasurer Jaclyn Symes on 5 May 2026, maintained the existing first home buyer framework without major changes. The state offers a $10,000 First Home Owner Grant (doubled to $20,000 for regional buyers), a full stamp duty exemption up to $600,000 with concessional rates through to $750,000, and an extended off-the-plan concession. In 2026-27, Victoria will forgo $740 million in revenue through these first home buyer measures.
$10,000 FHOG: Standard, $20,000 for Regional
The Victorian FHOG provides $10,000 for newly built or substantially renovated homes valued up to $750,000. No changes were announced in the 2026-27 Budget.
For eligible first home buyers in regional Victoria, the grant doubles to $20,000 — making it significantly more generous than metropolitan areas. The $750,000 property value cap applies uniformly.
Eligibility requires Australian citizenship or permanent residency, at least 18 years of age, no previous residential property ownership in Australia, and 12 months continuous occupation as a principal place of residence.
Stamp Duty Concession: Full Exemption to $600K
Victoria's stamp duty concession for first home buyers is tiered:
- Properties up to $600,000: Full stamp duty exemption
- $600,001 to $750,000: Concessional rates on a sliding scale
- Over $750,000: No concession — full duty applies
VIC general stamp duty rates are structured progressively: 1.4% up to $25,000, 2.4% ($25,001-$130,000), 6% ($130,001-$960,000), 5.5% ($960,001-$2,000,000), and 6.5% over $2,000,000. At the median Melbourne house price approaching the high $900,000s, many first home buyers in the capital will need to look at properties under $750,000 to benefit from the stamp duty concession.
Off-the-plan concession: Extended six months to 21 April 2027 (previous deadline was 20 October 2026). This allows a 100% deduction of outstanding construction costs from the dutiable value, reducing stamp duty significantly for off-the-plan purchases. Available to both owner-occupiers and investors.
How VIC Compares to Other States
Victoria sits in the middle of the pack on first home buyer generosity. NSW offers a higher exemption threshold ($800,000 vs VIC's $600,000) but a smaller grant. QLD has vaulted ahead with $30,000 FHOG and zero stamp duty on new builds regardless of price. SA and ACT have abolished stamp duty for first home buyers entirely on new builds and all homes respectively. WA has lifted thresholds three times.
Victoria's advantage is the regional top-up. The $20,000 FHOG in regional areas is competitive, especially in markets like Ballarat, Bendigo, Geelong, and the Latrobe Valley where property prices sit comfortably under the $750,000 cap.
Victoria's Broader Tax Landscape for Property Buyers
Several other property-related taxes may affect first home buyers, investors, and foreign purchasers in Victoria:
Land tax and the COVID Debt Levy: Victoria's land tax threshold for individuals remains at $50,000 ($25,000 for trusts and companies) until 2033. The controversial COVID Debt Levy, legislated to run until 30 June 2033, is forecast to raise $1.2 billion in 2026-27. This is in addition to standard land tax rates.
Vacant Residential Land Tax (VRLT): 1% of capital improved value for properties vacant more than 6 months in a calendar year, 3% for long-term vacancies. The statewide expansion from 1 January 2025 continues. From 1 January 2026, VRLT also applies to undeveloped residential land in metropolitan Melbourne left idle for 5 or more years. The State Revenue Office has run 13,300-plus investigations finding over 90% non-compliance and assessing $888 million in liabilities — VRLT enforcement is aggressive.
Commercial and Industrial Property Tax (CIPT): Commenced 1 July 2024 as Victoria's experiment in replacing stamp duty with annual property tax for commercial and industrial transactions. Over 12,000 properties have entered the reform. Businesses are expected to pay $714 million less in transfer duty over four years. This does not directly affect residential first home buyers but signals the direction of state tax reform.
Absentee Owner Surcharge: 4% surcharge on taxable land value for foreign owners of residential and commercial land. No changes in 2026-27.
Short Stay Levy: 7.5% on total booking fees for stays under 28 consecutive days, continuing in 2026-27. Collected by platforms (Airbnb, Stayz) or directly by owners.
Foreign Buyers in Victoria
Victoria imposes an 8% foreign buyer stamp duty surcharge on top of standard transfer duty — matching QLD and NSW. The 4% absentee owner surcharge applies annually on the taxable land value. Combined with federal FIRB rules and the established dwelling ban extended to 30 June 2029, foreign buyers face significant upfront and ongoing costs.
Federal Schemes: First Home Guarantee and Help to Buy
Victorian buyers can stack state benefits with Commonwealth programs:
First Home Guarantee: 5% deposit, no LMI, no place cap, no income caps since October 2025. Melbourne and VIC regional centres: $800,000 price cap. The buyer must be an Australian citizen, 18+, and a genuine first home buyer.
Help to Buy: Government co-purchases up to 40%. 2% minimum deposit. Income caps: $103,000 single, $165,000 joint or single parent. Expected VIC price cap of approximately $1,000,000 under the Budget 2026-27 expansion.
FAQ
Can I get $20K FHOG for regional Victoria and stack with stamp duty exemption? Yes. If you purchase in a designated regional area, you receive the $20,000 FHOG on a new build up to $750,000, plus the full stamp duty exemption if the property is under $600,000 (or concessional rates to $750,000).
Does the off-the-plan concession help first home buyers? Yes, significantly. The 100% deduction of outstanding construction costs from the dutiable value can reduce stamp duty on an off-the-plan apartment substantially. This is available to owner-occupiers and investors and has been extended to 21 April 2027.
What happens at $750,001? You lose both the stamp duty concession and the FHOG entirely — they both cut off at $750,000. There is no sliding scale beyond this point.
How does VIC land tax affect first home buyers? It doesn't. Your principal place of residence is exempt from land tax. The $50,000 threshold and COVID Debt Levy only apply to investment properties, commercial land, and holiday homes — not the home you live in.
Is the VRLT something I need to worry about as a first home buyer? Only if you leave your property vacant for more than 6 months without a valid reason. As a principal place of residence, this is unlikely. The VRLT primarily targets investors, speculators, and undeveloped land.