First home owners and the First Home Owners Grant.
So your a first home buyer, no deposit and not sure how to get one?
Thanks to the Australian government you can in most cases borrow the full amount without the need to have a saved deposit. This is thanks to a scheme that was introduced in the year 2000 to offset the GST (Goods and Services Tax) Basically the government started charging a 10% GST tax on Goods and Services which effected peoples bottom line, making housing less affordable.
The First Home Owners Grant (FHOG) is provided in most states in Australia and successful applicants are able to claim up to $7000. We have listed them, along with some additional research links and information below for your convenience.
How the First Home Owners Grant works and how much do you get?
First Home Owner Grant (FHOG)
The First Home Owner Grant scheme commenced on 1 July 2000. Eligible applicants are entitled to a one-off $7000 grant, providing they meet the scheme’s eligibility criteria. A copy of the First Home Owner Grant Act 2000 can be purchased from the State Law Publisher, 10 William Street, Perth.
Please note: There may be a duty liability on the eligible first home owner transaction.
First Home Owner Grant Cap
From 1 January 2010, there has been a cap on the total value of buying or building a home for which the first home owner grant will be payable. The cap limits the total value of properties (i.e. total value of home and land) to $750,000 or less, or if the home is located north of the 26th parallel to $1,000,000 or less.
The First Home Owner Grant (FHOG) Scheme was introduced on 1 July 2000 and provides a $7,000 grant to first home buyers to purchase their first home. The FHOG scheme is fully funded by the ACT Government and administered by the ACT Revenue Office.
A first home owner grant cap applies for eligible transactions that commence on or after 1 January 2011. The cap limits the total value of eligible properties (i.e. total value of home and land) to $750,000 or less. This cap does not apply to eligible transactions that commenced before 1 January 2011.
An applicant may be eligible for a further first home owner grant if a grant for an eligible transaction that commenced on or after 1 January 2011 has been repaid, including any penalties and interest. For details see Revenue Circular FHOG004. However, if an applicant has been convicted of an offence under the Act in the ACT or a corresponding First Home Owner Grant Act in another jurisdiction an applicant is ineligible for a further grant in the ACT.
For all relevant links, forms and more information for the First Home owners Grant in the ACT click here
New South Wales
First home benefits
The New South Wales Government is committed to helping as many young people as possible to buy their first home. We are about getting more young families into their first home and helping them to get on with establishing their lives.
First home benefits of up to $24,990 are available being the $7,000 First Home Owner Grant and a duty exemption of up to $17,990 under the First Home Plus Scheme.
First Home Owner Grant changes
First Home Owner Grant cap
On 1 January 2011, the cap was increased to $835,000. The $835,000 cap applies to all applications where the commencement date of the eligible transaction is on or after 1 January 2011. Applicants who purchase or build a home which has a total value of more than $835,000 will not be eligible for the grant.
The previous cap of $750,000 still applies where the eligible transaction commencement date falls between 1 January 2010 and 31 December 2010 (inclusive). Prior to 1 January 2010 there was no cap applicable.
First home benefits received for top 20 NSW suburbs and towns
First home benefits received for top 20 NSW suburbs and towns - last 12 months
First home benefits received for top 20 NSW suburbs and towns - from inception to 31 December 2011
For more information on the New South Wales FHOG, click here
The FHOG scheme provides eligible first home owners with a $7 000 grant in relation the purchase or construction of a home.
It is an ongoing scheme introduced on 1 July 2000 to encourage and assist home ownership and to offset the effect of the GST on home ownership.
FHOG is not means tested however, from 1 January 2010 eligibility ceases to apply if the consideration for, or the value of the home is more than $750 000. This includes the unencumbered value of the land on which a home is to be built.
TRO administers FHOG with the assistance of financial institutions that are approved agents.
For more information on the Northern Territory FHOG click here.
The $7,000 first home owner grant was created to help you buy or build your first home. It is a federal initiative that is administered and funded by the state government.
You may also qualify for a transfer duty concession on your home. To find out more information for the FHOG in Queensland click here.
As part of the State Budget 2010 handed down on 16 September 2010, the Treasurer announced the introduction of a FHOG property value cap of $575,000 based on the market value of properties purchased or built by first home buyers otherwise eligible for the First Home Owner Grant. The cap will apply to applicants who enter into a contract to purchase or build a home on or after 17 September 2010, or who commence construction as owner builders on or after 17 September 2010.
The market value of the property:
in the case of a contract for the purchase of a new home is the consideration for the purchase of the home, or, where that consideration is less than the market value, then the market value of the property;
in the case of a comprehensive building contract is the sum of the consideration for the building contract and the market value of the property on which the home is to be built as at the time when the contract is made, or, where the consideration for the building contract is less than the actual costs, the sum of the actual costs to build the home and the market value of the property on which the home is to be built as at the time the building contract is made;
in the case of an owner builder is the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.
What Homes Qualify - The $7000 Grant
A new or established dwelling including a house, flat, unit, townhouse or apartment anywhere in South Australia that meets local planning standards. The dwelling must be used as your principal place of residence within 12 months of the date of settlement in the case of an established home, or for a new home, 12 months from the date construction is completed.
The contract to purchase an established home or to build a new home must be signed no earlier than 1 July 2000.
Who is eligible to receive the Grant?
A first home buyer who fulfils the criteria below:
at least one of the applicants must be an Australian citizen or have permanent residency in Australia. New Zealand citizens permanently residing in Australia, who hold Special Category Visas, may also apply;
none of the applicants or their spouse/domestic partner can have previously owned a residential property anywhere in Australia prior to 1 July 2000;
for eligible transactions entered into on or after 1 January 2005, an applicant or their spouse/domestic partner cannot have purchased a property on or after 1 July 2000 and occupied that property continuously for 6 months or more;
for eligible transactions entered into on or after 1 January 2005, applicants must occupy the home purchased or built, as their principal place of residence for a continuous period of at least 6 months commencing within 12 months after completion of the eligible transaction;
except in cases of legal disability, applicants must be natural persons (that is, not a company);
everyone who on completion of the transaction will be an owner of the home is considered an applicant; and
applicant(s) must be at least the age of 18 years at the time of making application for the grant.
For more info on the FHOG for South Australia please click here.
To offset the impact of the introduction of the goods and services tax (GST), the Commonwealth, States and Territories agreed to implement arrangements to assist first home buyers through the establishment of the First Home Owner Grant (FHOG) scheme.
The FHOG scheme commenced on 1 July 2000. Each State and Territory Revenue Office is responsible for administration of the grant in their respective jurisdiction.
The broad principles of the grant are:
Eligible applicants will be entitled to a one-off payment of up to $7 000 (however, see First Home Owner Grant Boost information below).
Eligible applicants must be natural persons (not a company, business or trust) and at least 18 years of age, who are Australian citizens or permanent residents, who are buying or building their first home in Australia.
To qualify for assistance, neither the applicant nor their spouse (or partner) can have owned a home prior to 1 July 2000, either jointly, separately or with some other person, or purchased a home on or after 1 July 2000 and occupied that home.
Entering into a building contract or commencement of building, in the case of owner-builders, must have occurred on or after 1 July 2000.
An eligible home will be located in Australia and will be a new or established house, home unit, flat or other type of self contained fixed dwelling that meets local planning standards.
An eligible home must be intended to be a principal place of residence and occupied for a continuous period of 6 months commencing within 12 months of completion of the transaction (settlement or completion of construction).
Assistance is not means tested.
Joint applicants will be restricted to a single application for a single property and only one grant will be made.
For more information on the FHOG in Tasmania please click here.
The First Home Owner Grant provides eligible first home buyers with a $7000 grant. This grant is not means-tested nor is it restricted by the price of the property for contracts entered into prior to 1 January 2010.
For contracts entered into on or after 1 January 2010, the grant will only be payable where the price of the property or construction of the home does not exceed $750,000. An exception to this requirement is where the contract relates to a home that is on, or to be built on, primary production land.
For more information on the FHOG in Victoria please click here.
Ok, if you still have questions after reading the information above do not worry. Once we have processed your successful application, your assigned broker will do the rest for you, no hassles.