In general terms, this means that if you meet the conditions for the $7,000 First Home Owner Grant and the home you are building or buying costs a total of $600,000 or less, you are likely to be eligible.
For most first home buyers, this will mean a saving of between $2,500 and $5,000 depending on the cost of the home.
This is based on the median house prices in suburbs most popular with first home buyers: Caroline Springs, Craigieburn, Cranbourne, Deer Park, Derrimut, Epping, Hoppers Crossing, Mernda, Pakenham, Point Cook, Skye, Tarneit and Werribee.
This saving will be welcomed by price-conscious first home buyers. Recent data shows that around one in every seven homes is bought by a first home buyer; two years ago, around one in every four homes was bought by a first home buyer.
The substantial reduction in the number of first home buyers is because over the past few years not only has the cost of homes and taxes increased but the actual value of government assistance has reduced.
So it will be even more beneficial when the stamp duty cuts are increased incrementally from 20 per cent to 50 per cent over the next few years.
The cut will increase to 30 per cent on 1 January 2013, to 40 per cent on 1 January 2014 and then 50 per cent on 1 September 2014.
Full details and eligibility requirements can be found at www.sro.vic.gov.au.