Albanese government boost to Help to Buy prompts call for Vic government to lift stamp duty cap for state’s first-home buyers

10 Gladeswood Drive, Mulgrave, sold to a first-home buyer who paid more than $1m for the property.

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The Victorian government is being called on to follow new federal government plans to give first-home buyers a $100,000 boost to their buying power.

Yesterday the Albanese Government announced they would expand their Help to Buy scheme with an additional $800m in funding to be part of next Tuesday’s budget, and Melbourne’s market entrants now able to use the scheme for purchases up to $950,000 — up from $850,000.

The program helps first-home buyers and single parents purchase a home with deposits as low as 2 per cent, but requires they meet certain criteria — and accept the government owning up to 40 per cent of their home.

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It means would-be buyers will be able to access support for purchases worth $58,000 more than the city’s $892,000 median house price and almost $375,000 above the typical unit value.

The move came as a first-home buyer won the keys in a $1.187m Mulgrave auction yesterday, with PropTrack stats show Melbourne’s preliminary clearance rate hit 67 per cent from 844 results.

Real Estate Institute of Victoria chief executive Kelly Ryan yesterday said while it was good to see the federal government providing additional support, the state government should also reconsider the $750,000 cap on its stamp duty assistance program for first-home buyers.

The threshold hasn’t changed since 2017.

REIV chief executive Kelly Ryan said it was time for stamp duty to be reviewed in Victoria.

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“You would take any incentive to get people into the property market right now, and the federal government has recognised that the current cap is not doing as much as it should be,” Ms Ryan said.

“This absolutely a sign that the stamp duty program needs to be looked at. Stamp duty overall needs to be given an overhaul, not just for first-home buyers.”

The REIV chief executive said the tax was a key factor in Victorians holding onto homes longer than they needed, preventing the state from making better use of its existing residences at a time when population growth was straining affordability for buyers and renters.

Ms Ryan added that both federal and state governments needed to also find ways to encourage property investors to stay in the market, and increase their numbers, in order to boost the supply of rental homes.

134 Monterey Blvd, Frankston North, sold to a first-home buyer who paid

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Latest Australian Bureau of Statistics data shows that in the final three months of 2024 more than 10,300 Victorian first-home buyers signed up for a loan, more than 40 per cent of the total number of homebuyers taking on loans state wide.

It was the highest quarterly figure since 2021.

Ray White chief auctioneer Jeremy Tyrell said first-home buyers had been a significant force around Melbourne in 2025, and that he wouldn’t be surprised if their numbers were up compared to the end of 2024.

“Particularly out west, we are seeing a lot of them in areas where they can buy in the $500,000-$700,000 bracket,” Mr Tyrell said.

Yesterday, Mr Tyrell said they had been the driving force behind the $695,600 sale of 134 Monterey Blvd, Frankston North.

Inside the 134 Monterey Blvd, Frankston North, home sold to a first-home buyer.

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Another sale by the firm, Victoria’s largest real estate group, ended with a first-home buyer claiming the keys to 10 Gladeswood Drive, Mulgrave, despite the home selling for $1.187m.

The auctioneer added that there was a surprising percentage who were buying beyond $800,000 who could benefit from the scheme’s adjustment.

Mr Tyrell said even first-home buyers who missed out on a spot in the scheme could benefit if divorcees, accessing it as a single parent, were able to buy in higher price brackets — as this could move them back into middle-ring areas, rather than forcing them to compete with market entrants.

The changes to the Help to Buy scheme also boosted the income cap for buyers, allowing couples and single parents earning up to $160,000 to use it after previously capping the program at $120,000, while singles will have the figure boosted from $90,000 to $100,000.

In last year’s state budget, the Allan government announced that the dedicated Victorian Homebuyer Fund co-buying scheme would be replaced by the federal scheme.

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