Grants to get you in your first home
About the time that GST was introduced, the Government created the first home owners grant to offset the effect the new tax would have on home ownership.
The first home owners grant scheme (FHOGS) gives first home buyers a one off payment of $7000 towards their property purchase. It applies to residential dwellings that are either already existing or under construction, but it does not apply to vacant land.
There are some other conditions:
- you must be a permanent resident or Australian citizen;
- you have to be at least 18 years old;
- companies and trusts aren’t eligible – you must purchase the property as an individual;
- one of the applicants must live in the home for at least six months and move in within 12 months of the contract being signed;
- neither you, your spouse or defacto partner can have owned or jointly owned a property that you’ve lived in, or received a first home owners grant in any state or territory of Australia before.
A friendly boost
If you’re eligible for a first home owners grant, then you’ll also get a boost if you purchase a property between 14 October 2008 and 30 June 2009. Find out more about the first home owners boost scheme here.
In your state
Each Australian State Government funds and administers its own FHOGS and many offer additional money on top of the first home owners grant.
Here’s a summary for each state and some links for more information:
ACT
- $7000 first home owners grant;
- You may be eligible for a Home Buyer Concession Scheme on duty, depending on the value of the property you buy. There may also be an option to defer payment of duty;
- More information on ACT’s first home buyer assistance.
http://www.revenue.act.gov.au/home_buyer_assistance_mp/7
New South Wales
- $7000 first home owners grant;
- First home plus scheme offers exemptions and concessions on transfer duty. If you purchase a home valued at under $500,000 you don’t have to pay transfer duty, and there are concessions for homes valued between $500,000 and $600,000;
- More information on New South Wales’ first home buyer assistance. http://www.osr.nsw.gov.au/benefits/first_home/
Northern Territory
- $7000 first home owners grant;
- You may be eligible for a Home Buyer Concession Scheme on duty, depending on the value of the property you buy;
- More information on the Northern Territory’s first home buyer assistance. http://www.nt.gov.au/ntt/revenue/home_incentives.shtml
Queensland
- $7000 first home owners grant;
- You may also be eligible for a transfer duty and mortgage duty concession;
- More information on Queensland’s first home buyer assistance. http://www.osr.qld.gov.au/fhog/first-home-owner-grant/index.shtml
South Australia
- $7000 first home owners grant;
- A First Home Bonus Grant of $4,000 is available for first home purchases with a market value of up to $400,000 and phases out for property with market values between $400,000 and $450,000 by $8 for every $100 in excess of $400,000;
- More information on South Australia’s first home buyer assistance. http://www.revenuesa.sa.gov.au/
Tasmania
- $7000 first home owners grant;
- More information on Tasmania’s first home buyer assistance. http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/v-fhog/home
Victoria
- $7000 first home owners grant;
- You may also be eligible for a First Home Bonus of $3000 for established homes and $5000 for new homes. If you’re building in regional Victoria, there’s an additional $3000 on top of the base bonus of $5000;
- More information on Victoria’s first home buyer assistance. http://www.sro.vic.gov.au/sro/SROWebSite.nsf/rebates_fhog.htm
Western Australia
- $7000 first home owners grant;
- A concessional rate of transfer duty may apply when the property value is below $600,000 for a house and land, or $400,000 for vacant land;
- More information on Western Australia’s first home buyer assistance. http://www.dtf.wa.gov.au/cms/osr_content.asp?ID=344