It’s the Australian Dream and there is a government first home owner grant available in each state. This article looks at these and how you, as a first home buyer in this particular economic environment, to see how you can make the Aussie Dream a reality for your family.
First Home Owner Grant (FHOG) scheme
The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on homeownership. It was designed as a nationwide scheme, funded by the states and territories to be administered under each state’s individual laws.
Under the FHOG scheme, a one-off grant may payable to first homeowners, satisfying a range of criteria, such as buying or building a new home, the total value of the property, the contract date, being be an Australian citizen or permanent resident. There are many other criteria, each state is different, so let’s have a look:
ACT: Home buyer concession scheme
The ACT Government has a concession scheme to help people buy a home or residential land. The scheme is administered by the ACT Revenue Office.
The scheme is changing from 1 July 2019, to help more people buy the home that’s right for them by removing duty on any property they want to buy.
Eligibility requirements for the scheme determine whether you will have to pay the duty. The transaction date is the date of grant, transfer, or agreement for transfer, whichever is first—it is not the settlement date.
NSW HomeBuilder program
As a response to the impact of COVID19 HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within three months of the contract date.
HomeBuilder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
Revenue NSW is working to open the HomeBuilder grant for eligible NSW owner-occupiers as soon as possible. They will update the website with more information on the HomeBuilder grant application process as it becomes available.
There are other programs that you can find here…
Northern Territory’s First home owner grant
From 7 May 2019, if you are buying or building a new home, you can apply for a First Home Owner Grant (FHOG) of $10,000.
You may also be eligible for the BuildBonus grant and Territory Home Owner Discount.
From 1 January 2020, you can apply for the First Home Loan Deposit Scheme. To find out if you are eligible or for more information, go to the Australian Government National Housing Finance and Investment Corporation website.
A new home is one that is one that has never been previously lived in or sold as a place of residence.
Queensland First Home Owners’ Grant
The Queensland First Home Owners’ Grant is a state government initiative to help first homeowners to get their new first home sooner.
If your contract is dated 1 July 2018 or later, you can get the Queensland grant of $15,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000). The grant is paid per new home; not to each of the applicants for the same home.
The grant amount has varied since it was first introduced in 2000. Contracts dated earlier than 1 July 2018 may still be eligible for a grant.
You can buy off the plan or choose to build yourself.
To be eligible for the grant:
- You must be at least 18 years of age.
- You must be an Australian citizen or permanent resident (or applying with someone who is).
- You or your spouse must not have previously owned property in Australia that you lived in.
- You must be buying or building a brand new home.
- The value of the home including the land is less than $750,000.
- You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.
South Australia First Home Owner Grant (FHOG)
The First Home Owner Grant (FHOG) is paid by the State Government to eligible first home owners. The payment is made only after an application has been submitted to and approved by RevenueSA or a financial institution authorised by RevenueSA to process applications.
FHOG applies to the purchase or construction of a new residential property, including a house, flat, unit, townhouse or apartment that meets local planning standards anywhere in South Australia. FHOG ceased for established homes from 1 July 2014.
The residential property must be occupied as each applicants’ principal place of residence for a continuous period of at least six months commencing within 12 months of date of settlement for contracts to purchase, or the date construction is completed for owner builders or contracts to build.
How much is FHOG?
The amount of FHOG payable is determined by the date the contract to purchase or build a home is entered into, or the date on which construction commenced for owner builders.
FHOG is payable per eligible transaction regardless of the number of applicants. FHOG payments will not be split.
Tasmanian HomeBuilder Grant
A $20 000 grant available to all owner-occupier new home builds for contracts entered into between 4 June 2020 and 31 December 2020 inclusive.
Refer to the Tasmanian Government Guideline, which includes eligibility criteria announced on Thursday, 4 June 2020.
More information will be posted on their website once the administrative details are available and legislation is passed through Parliament.
Victoria First Home Owner Grant (FHOG)
A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.
The FHOG is $20,000 for new homes built in regional Victoria, for contracts signed from 1 July 2017 to 30 June 2021. (Read information about FHOG amounts available before 1 July 2013.)
Your first home can be a house, townhouse, apartment, unit or similar but it must be valued at $750,000 or less, be the first sale of the property as residential premises and the home must be less than five years old.
It cannot be an investment property or a holiday house.
The FHOG may be paid in addition to other exemptions or concessions for eligible homebuyers, including pensioners.
The timing of your FHOG payment depends on the contract you sign to buy or build your new home, and whether you lodge your application directly with the Victoria Government or via an approved agent.
For eligibility on this, please visit the website.
Western Australia’s First home owner grant (FHOG)
The first home owner grant (FHOG) is a one-off payment to encourage and assist first home buyers to buy or build a residential property for use as their principal place of residence. The grant is $10,000 or the consideration paid to buy or build the house if less than that amount. Only one grant is payable per eligible transaction, so two people purchasing a house together may only receive one grant.
If you are a first home owner, you may qualify for the grant if you are purchasing or building a new home. A home that has been substantially renovated may be considered a new home. The grant is not available for the purchase of an established home or for renovations to an existing home.
If you receive the grant or you would be eligible except that you are purchasing an established home, you may be eligible for the concessional first home owner rate of duty.
Final Thoughts on the First Home Owners Grants
Each state and territory has different criteria on which they base eligibility, but you can find a good round up here, at Canstar.
Don’t forget, we have a range of products for home buyers, so if you need suggestions, we are more than happy to discuss your options and available products to finance your first home.