If you are planning on buying your first home, then you may be eligible for the First Home Owner Grant (“FHOG”).
The FHOG was introduced by the Federal Government to assist home buyers offset the effects of GST when buying their first home. It is a national scheme funded by the States and Territories and administered under their own legislation.
- Comprises a one-off payment of $7,000 (In addition, some States and Territories also offer other grants and benefits for first home buyers);
- Is not means tested, and there’s no upper limit on the value of the property purchase; and
- Is available to applicants who meet the eligibility criteria.
Boost for First Home Buyers
The Australian Government has announced a First Home Owner Boost, which supplements the FHOG scheme. According to the announcement from the Commonwealth:
- First home buyers who purchase established homes will receive a boost of $7,000 that will double the grant to $14,000;
- First home buyers who build a new home or purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000; and
- First home buyers will be eligible for the First Home Owner Boost on contracts entered into from 14 October 2008 to 30 June 2009.
Who Can Apply for the Grant?
You may be eligible if:
- Neither you nor your spouse/de facto has previously received the grant;
- Neither you nor your spouse/de facto have ever owned a residential property, either jointly or with any other person, before 1 July 2000;
- Neither you nor your spouse/de facto has ever owned and occupied a residential property, either jointly or with any other person, after 1 July 2000;
- Each applicant is a natural person (i.e. not a company or trust);
- At least one of the applicants is a permanent resident or citizen of Australia;
- At least one applicant must occupy the home as their principal place of residence for a continuous period of at least six months; and
- You meet the minimum age requirements introduced by the States and Territories.
What Type of Property is Eligible?
Properties that are being built, or properties that are new or established, may be eligible. The property can be a house, unit, flat or any other type of self-contained, fixed dwelling that meets local planning standards.
When is the Grant Paid?
If the grant application is lodged with an approved agent (e.g. your bank), payment will be made:
- At settlement (for the purchase of an existing dwelling);
- First progress payment (for a contract to build);
- On acceptance of a Certificate of Occupancy (if you’re an owner/builder).
If the grant application is lodged by you directly with the State or Territory revenue office:
- After settlement — 14 days after lodging your application with your state or territory revenues office (for the purchase of an existing dwelling);
- Once a Certificate of Occupancy is issued — 14 days after lodging your application with your state or territory revenues office (for a contract to build or an owner-builder);
- Following production of evidence that final inspection occurred (Terms contract)
Where Can I Find More Information?
Click on the links below to be taken to the official website’s for your desired state or territory.
Australian Capital Territory
New South Wales