The Law Handbook 2024

550 Section 6: Houses, communities and the road • an exemption from duty – when you buy a home valued at $600,000 or less, or • a concession from duty – when you buy a home valued from $600,001 to $750,000. The thresholds for the pensioner and concession card duty reduction (the reduction) apply to the total value of the home. This means that if you buy a share in the home (also known as a fractional interest) the thresholds are assessed against the total value of the home, not the value of any share you buy. A buyer is eligible for this exemption or concession if they: • hold a relevant concession card* on the property settlement date; and • have never before received a pensioner exemption or concession in Victoria; and • are buying the property for market value; and • intend to use the property as their principal place of residence. * For a list of eligible concession cards, visit www.sro. vic.gov.au/node/1398. To calculate the pensioner concession, use the calculator at www.sro.vic.gov.au/calculators/ pensioner-exemption-or-concession-calculator. This exemption or concession is also available where there are multiple buyers who are purchasing a property together and only one buyer has an eligible pension card, provided the pensioner is acquiring at least 25% of the property. Other grants There are several federal and state government schemes to assist first home buyers to get a home loan and purchase their first property. Generally, these schemes are administered by the SRO. First Home Super Saver Scheme The First Home Super Saver Scheme ( FHSSS ) allows you to save money for your first home inside your super fund. The FHSSS helps first-home buyers save for a home faster with the concessional tax treatment of superannuation. You can apply to have a maximum of $15 000 of your voluntary contributions released from any one financial year, and up to a total of $50 000 across all years. You will also receive an amount of earnings that relate to the contributions. You must apply for and receive a FHSSS determination before signing a contract for your first home and before applying for contributions to be released. More information about the FHSSS is available on the ATO’s website at www.ato.gov.au/individuals/ super/withdrawing-and-using-your-super/first- home-super-saver-scheme. First Home Guarantee (and Regional First Home Guarantee) The First Home Guarantee allows first-home buyers to purchase a property with a five per cent deposit without needing to pay lender’s mortgage insurance. Under this scheme, Housing Australia will guarantee up to 15 per cent of the value of the property. The scheme has strict requirements dictating, for example, price caps on what can be purchased, and limits on the number of places and income thresholds. For more information about this scheme, see www.nhfic.gov.au/support-buy-home/first-home- guarantee. Family Home Guarantee The Family Home Guarantee ( FHG ) allows single parents and guardians to purchase an existing home with a deposit as little as two per cent without needing to pay lender’s mortgage insurance. This scheme is available to all single parents – regardless of whether they are a first-home buyer or have owned property before. Buyers need to apply for the FHG directly through their lender. Approval is subject to the buyer’s ability to service (i.e. pay off) the loan, as well as income caps. For more information about the FHG, visit www. nhfic.gov.au/support-buy-home/family-home- guarantee. Victorian Homebuyer Fund Through the scheme, the Victorian Government provides eligible participants with a contribution of up to 25 per cent of the purchase price of the home. Participants need to contribute a minimum of 5 per cent of the purchase price and cover any acquisition costs, such as stamp duty and conveyancing costs. The remaining amount is to be secured through a home loan from a partner lender. Participants are required to buy back the government’s share in their property over time through refinancing, using accumulated savings, or upon sale of the property. The Victorian Government does not charge interest on its investment in participants’ homes, but shares in