Who is eligible for the First Home Owners Grant?
Even though the requirements for the First Home Owners Grant are not onerous and not means-tested, home buyers must be able to meet certain criteria. To qualify for the First Home Owners Grant, a customer must:
The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effects of the GST on home ownership. It is nationally funded but the states and territories administer it under their own legislation. Under the scheme, first home owners who qualify are given a one-off grant of up to $15,000.
- Be an Australian citizen or permanent resident
- For the purpose of purchasing or construction of their first home in Australia
- Occupy the property as their primary residence within 12 months of the settlement and continuously live in it for at least 6 months
Other criteria
Customers who plan to purchase a property with co-buyers must also meet the same criteria to qualify. First home buyers must also be informed about the implemented caps before assuming they are qualified. Every state has its own cap:
- New South Wales: $650,000
- Queensland: $750,000
- South Australia: $450,000
- Victoria: $750,000
- Western Australia: $750,000 or $1,000,000 for property north of the 26th parallel
- Australian Capital Territory: $750,000
- Northern Territory: $750,000
- Tasmania: No limit
Other benefits
Eligible First Home Buyers might also be eligible for other benefits like the following:
- NSW – An exemption from duty is available for eligible first home buyers purchasing a new home valued up to $550,000 and vacant land up to $350,000. This includes buying land as the site to build their first home. From 1st October 2012 to 31 December 2013, the $7000 First Home Owners Grant will be replaced by the $15,000 First Home Owner Grant (New Homes) Scheme for properties up to $650,000. The grant will reduce to $10,000 on 1st January 2014.
- South Australia – The First Home Owner Grant (FHOG) will be increased to $15,000 for contracts entered into on or after 15 October 2012.
- Tasmania – No additional grants on top of the Federal Governments $7,000 First Home Owners Grant.
- Victoria – No additional grants on top of the Federal Governments $7,000 First Home Owners Grant however there are stamp duty concessions
- Western Australia – No additional grants on top of the Federal Governments $7,000 First Home Owners Grant.
- QLD – The First Home Owner Grant has been replaced by a $15,000 First Home Owner Construction Grant, which applies only to newly-built or off the plan property purchases valued up to $750,000. Stamp Duty Concessions are also available.
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