First Home Owners Grant

first-homeowners-grant-scheme

The First Home Owner Grant (FHOG) scheme started on 1 July 2000 as a response to the effects of the introduction of GST on the costs of home ownership.

The scheme is generally available to natural person individuals of minimum age 18 years (with exceptions), being an Australian citizen or permanent resident.

In general previous ownership of residential property in Australia by the applicant(s) or spouse is a disqualification from being eligible. With limited exceptions, a FHOG in Australia can only be received once.

Payments and eligibility criteria are separately administered by each State and Territory under their own rules, which have variously changed from time to time. Whilst all the schemes have a broadly similar structure, they differ significantly in the details.

** The information presented on this page is a summary only. Please consult the references or get professional advice before taking any decision. **

The first home owners grant is not taxable income, however it is subtracted from the cost base if a capital gains tax calculation is applied to the eventual disposal.

Usual grant conditions require the applicant to continuously live in the property as a principal residence, commencing within a short period (typically 6 to 12 months) of the property’s transaction completion date. The necessary period of occupancy is 6 or 12 months, depending on the State or Territory. Failure to fulfill the occupancy conditions generally requires the grant to be paid back.

In most cases, first home owners also qualify for further incentives, including reductions of stamp duty.

Summary of State and Territory First Home Owner Grant Schemes

State/TerritoryRules dating from..Application time limitOccupancy requirementProperty typeMaximum home valueCurrent Maximum grantMore info
New South Wales1 July 20171 yearcontinuous 6 monthsNew or substantially renovated,
not previously occupied or sold as residence
New home purchase $600,000; Owner-builders $750,000$10,000 from 1 Jan 2016info
Victoria 1 July 20131 yearcontinuous 12 monthsNew – the first sale of
the property as residential premises
$750,000
.
$10,000
(Regional Vic $20,000 from 1 July 2017)
.
info
Queensland12 September 2012 1 yearcontinuous 6 monthsNew or substantially renovated,
not previously occupied or sold as residence
$750,000
.
$20,000 from 1 July 2016 to 31 Dec 2017
.
info
South Australia17 September 20101 yearcontinuous 6 monthsNew home since 30 June 2014;
(new or established home up to 30 June 2014)
$575 000
.
$15 000
(since 16 October 2012)
info
Northern Territory 1 January 20151 yearcontinuous 6 monthsNew or substantially renovated
– never previously lived in or sold as a place of residence
See also First Home Owner Stamp Duty Discount from 24 May 2016 to 30 June 2017
n.a.
.
$26,000
.
info
Western Australia 3 October 20151 yearcontinuous 6 monthsNew
or substantially renovated only
South of 26th parallel: $750,000
North: $1 million
$10,000
Boost: $5,000 (1 Jan 2017 to 30 June 2017)
.
info
TasmaniaFrom 1 Jan 20151 yearcontinuous 6 monthsNew home purchase or contract to build (24 month time limit).
.
$20,000 until 30 June 2019, (unless further extended). Thereafter reverts to $10,000
.
info
Australian Capital Territory1 September 20131 yearcontinuous 12 monthsNew or substantially renovated,
not previously occupied or sold as residence
$750,000
.
$12,500 to 31 Dec 2015 ($10,000 from 1 Jan 2016) ($7,000 from 1 Jan 2017)
To be abolished from 1 July 2019 in favour of free stamp duty for first home buyers with a household income below $160,000
info

 

See also

First home super saver scheme

http://www.firsthome.gov.au/

.
This page was last modified 2018-06-15