The boost means eligible first home owners will save up to $15,535 in stamp duty on dwellings valued up to $600,000.

In making the announcement on Sunday, Victorian Treasurer Michael O’Brien said the increase would help Victorians considering entering the home ownership market.

"This is a very important measure which will make home ownership more affordable for tens of thousands of Victorians and will help to support jobs in our building and construction industry," he said.

"This decision amounts to a $200 million tax cut over the next 12 months for Victorian first home buyers."

The concession would also support jobs by stimulating the housing construction industry, Mr O’Brien said.

Mr O'Brien said the stamp duty cut applied to all first home owners. 

"Stamp duty concession applies to all first home owners, whether they’re buying newly constructed or established stock, up to a value of $600,000," he said.

The 2014-15 concession rate is 10 per cent higher than the previous stamp duty amount in 2013-14, which was 40 per cent. 

Mr O'Brien said in 2013-14, Bendigo first home buyers saved a total of $534,432 because of the 40 per cent concession. 

PRDNationwide’s Bendigo director Tom Isaacs welcomed the news of the concession increase.

But he said while the concession was substantial for new home owners, he would have liked to see an increase in first home owner grants for newly built homes.

"It’s encouraging for first home owners but an increase to the first home owner construction grant would have a greater effect on the local economy," he said. 

He said at the moment there was a "minimal" amount of first home owners entering the market in Bendigo.