Essential Worker Housing in Victoria

What Victoria offers a first home buyer

Victoria provides duty relief rather than a large grant for most buyers, and the thresholds are tighter than in some other states.

First home buyer duty exemption or concession. A Victorian home with a dutiable value up to $600,000 carries no land transfer duty. From $600,001 to $750,000 the duty is reduced. The property can be new or established, or vacant land intended for a first home. Dutiable value is the price paid or the market value, whichever is greater, and off-the-plan purchases may have a reduced dutiable value where the plan duty concession applies.

All purchasers must be natural persons, at least 18, buying at market value and intending to live in the property. At least one purchaser must be an Australian citizen, New Zealand citizen or permanent resident. You are not eligible if you, your spouse or your partner have previously received a first home buyer duty exemption or concession or a First Home Owner Grant, or have owned and occupied a residential home in Australia for a continuous period of at least six months on or after 1 July 2000. Victim-survivors of family violence may still be eligible under separate relief.

At least one purchaser must occupy the home as their principal place of residence and live there for 12 continuous months within 12 months of settlement. Current Australian Defence Force members are exempt from the residency requirement, but reservists and Australian Public Service staff are not. All purchasers must be enrolled to vote in Victorian elections.

First Home Owner Grant. Victoria's grant applies to new homes within its published value limit and depends on the contract date and location. Confirm the current amount and cap with the State Revenue Office before you rely on it.

Federal support that applies in Victoria

• 5 percent Deposit Scheme. 5% deposit for eligible first home buyers, 2% for eligible single parents or legal guardians, with no LMI. Price caps apply by location and applications go through participating lenders.
• Help to Buy. Shared equity with published taxable-income limits of $103,000 for individuals and $165,000 for joint applicants or single parents, subject to its definitions, property caps and occupancy rules.
• Lender occupation waivers. Bank of Melbourne, part of the Westpac group, publishes the group's occupation-based LMI waiver. Bank First publishes a waiver for eligible education and healthcare first home buyers. NAB publishes waivers for medical, legal and finance professions. Understanding government home buyer assistance lists the current published terms and the conditions attached to each.

The $600,000 line, and why it shapes the search

In Melbourne the exemption boundary is low relative to the market, so the question is less about whether duty relief exists and more about whether a property below the boundary is realistic for your household. Options include a smaller dwelling, a different suburb, an off-the-plan purchase where the dutiable value is reduced, or accepting duty as part of your costs and planning the deposit accordingly.

Do not let a duty saving drive you into a property that does not suit your life. A concession on a home you want to leave in two years is not a saving. Choosing where to buy around your work and budget sets out how to weigh commuting, shift patterns and price together.

What to check before you commit

1. Contract date, because both duty and grant rules depend on it.
2. Dutiable value, which may differ from the advertised price, particularly off the plan.
3. Ownership history for you and your partner, including any period of occupation after 1 July 2000.
4. The 12-month residence requirement, and whether your work arrangements make it achievable.
5. Any discounted-price conditions, separately from any government benefit.

EWH is a private service, separate from government programs. We help eligible Essential and Key Workers understand discounted purchase opportunities and the finance that sits behind them, and we will tell you if a Victorian purchase does not look workable.