The First Home Owner Grant in Victoria: what it covers and who qualifies

The First Home Owner Grant (FHOG) is one of the main forms of government support available to first home buyers in Victoria. It's a $10,000 one-off payment, and it's specifically designed to help people buying or building a new home get into the market. If you're a first home buyer, knowing exactly what it covers and who can access it will help you understand whether it applies to your situation.

This is one step in our complete guide to buying your first home in Victoria.

What is the First Home Owner Grant?

The First Home Owner Grant is a national scheme administered by each state and territory with state-level rules. In Victoria, the grant is worth $10,000 and is available to eligible first home buyers who are purchasing or building a new home.

It was established in 2000 when the GST was introduced, as a way of offsetting the effect of the GST on new home purchases. It has been modified over the years, including different amounts at different times, but the current Victorian rate is $10,000. The amounts and rules differ in every state and territory.

The key eligibility criteria

To be eligible for the FHOG in Victoria, you need to meet all of the following:

You must be an Australian citizen or permanent resident. New Zealand citizens who hold a special category visa may also be eligible. Temporary residents are not eligible.

You must be buying or building your first home. You (and anyone you're buying with, if applicable) must never have previously owned a residential property in Australia, either as owner-occupier or investor. Previous ownership of any residential property in any state or territory disqualifies you.

You must intend to live in the property. The FHOG is for owner-occupiers, not investors. You must move into the property as your principal place of residence within 12 months of settlement (or, for builds, within 12 months of the building being completed), and you must live there for a continuous period of at least 12 months.

The property must be a new home. This is the most commonly misunderstood part of the eligibility criteria. The FHOG in Victoria applies only to new homes, not to established (existing) homes. A new home means a property that has not been previously occupied as a place of residence, or a property that has been substantially renovated to the point of being considered new.

The property value must be under $750,000. For a purchase contract, the purchase price of the new home must not exceed $750,000.

The new home requirement: the most common point of confusion

Many first home buyers assume the FHOG applies to any property they buy. In Victoria, it does not. If you're buying an existing house that was previously lived in, you don't qualify for the FHOG, even if you've never owned property before.

The types of transactions that are eligible:

• Purchasing a brand new home that has never been lived in (including display homes being sold off the building company's stock)
• Entering into a house and land package contract to build a new home
• Building a new home on land you already own (the construction contract must be for a new dwelling)
• Substantially renovated homes (the renovation must meet specific criteria to qualify as "new," which is assessed on a case-by-case basis)

What doesn't qualify:

• Buying an established home that was previously occupied
• Buying land only (without a construction contract)
• Buying an investment property

The $10,000 and when it's paid

The grant is a $10,000 lump sum. It's not a loan and doesn't need to be repaid, provided you meet the residency requirements after settlement.

For a purchase of a new home, the grant is paid at settlement. Your lender applies for it on your behalf as part of the settlement process.

For a construction contract (building a new home), the grant is paid at the first progress payment stage, which is typically when the slab is laid (the first drawdown on your construction loan).

The grant is applied for through your lender as part of your loan application, not directly from the State Revenue Office. Make sure your lender knows you're eligible and that they include the FHOG application in your loan paperwork.

Is it taxable?

The FHOG is not considered assessable income for tax purposes. You don't need to declare it in your tax return.

Combining the FHOG with other concessions

The FHOG can be used alongside other first home buyer concessions available in Victoria, particularly the stamp duty (land transfer duty) exemptions and concessions.

In Victoria, first home buyers purchasing a property valued up to $600,000 (an established or new home for owner-occupier purchase) are exempt from stamp duty. For properties between $600,001 and $750,000, a concession applies on a sliding scale.

If you're buying a new home valued at $750,000 or less, you may be eligible for both the $10,000 FHOG and a stamp duty concession, depending on the purchase price.

What if you're buying with someone who has previously owned property?

If you're buying with a partner, friend, or family member who has previously owned residential property in Australia, neither of you will qualify for the FHOG. All buyers on the contract must be first home buyers.

This is a common issue for couples where one person has previously owned property. If your co-purchaser has previously owned, the FHOG is not available to you for that transaction.

The First Home Guarantee vs the FHOG

It's worth being clear that the FHOG and the First Home Guarantee are different things.

The First Home Guarantee is a federal government scheme that allows eligible first home buyers to purchase with a 5% deposit and avoid lenders mortgage insurance (LMI), because the federal government guarantees part of the loan. It applies to both new and established homes.

The FHOG is a state government cash grant of $10,000, only available for new homes in Victoria.

Both can potentially be accessed by the same buyer for the same purchase if you meet the criteria for each. They come from different government programs and are applied for through different channels.

Practical steps

1. Check whether you meet all the eligibility criteria, particularly the new home requirement.
2. If you're buying through a lender (as most buyers do), tell your lender or broker that you believe you're eligible for the FHOG. They'll include the application in your loan paperwork.
3. Keep records of your move-in date and ensure you live in the property for the required 12-month period after settlement. If you don't meet the residency requirement, you may need to repay the grant.
4. Check the State Revenue Office of Victoria's website for the most current eligibility criteria and property value thresholds, as these can change.

The FHOG represents $10,000 toward your new home purchase. For most first home buyers building or buying new, it's a meaningful contribution worth making sure you claim correctly.

Sources

• State Revenue Office Victoria: First Home Owner Grant: the $10,000 grant, the new-home requirement, the $750,000 value cap, the residence and citizenship rules, and how to apply.
• SRO: First home buyer duty exemption or concession: the separate stamp duty exemption up to $600,000 and the sliding concession to $750,000 that can be combined with the grant.
• Housing Australia: First Home Guarantee: the separate federal 5% deposit scheme, and how it differs from the FHOG.

Sources verified 25 July 2026. Grant amounts, value caps, and eligibility change with government budgets; confirm the current figures with the State Revenue Office before relying on them.