Learn the ins and outs of the First Home Owners Grant to see if it applies to you
The First Home Owner Grant (FHOG) scheme was introduced by the Australian government on July 1, 2000 to offset the affect of GST on home ownership and to make it easier for young Australians to enter the property market. This national scheme is administered under the laws of each state.
Under this scheme, a one-off grant is typically offered to first home owners that fulfil the eligibility criteria as outlined by the governing state.
Making the decision to purchase a property is important so as a responsible and diligent first home buyer, you should have carefully reviewed your budget, compared different home loans and researched the property market.
Find out which grants and concessions may be available to you so you can pursue your dream of home ownership sooner.
Changes coming on 1 July 2017
Victoria - Doubling the first home owners grant for those buying property in regional Victoria, all purchases of new or established properties up to $600,000 will be exempt from paying any stamp duty and for purchases between $600,000 and $750,000 stamp duty will apply on a sliding scale.
Queensland - First home owners grant will revert back to $15,000 for the purchase of new or construction of a property.
Tasmania - First home owners grant will decrease to $10,000 for the purchase of a new home, an off-the-plan property or construction of a new home.
Below you’ll find the grants and stamp duty concessions available in each state. Remember there are a host of eligibility requirements for the grant and duty concessions which can vary from state to state, so be sure to visit your state’s office of revenue website and find out if you’re eligible.
The eligibility criteria for first home buyers differs slightly between the states and territories but generally, eligibility criteria includes:
- You must be a first home buyer as a person, not as a company or trust.
- At least one applicant must be a permanent resident or Australian citizen.
- Each applicant must be at least 18 years old.
- You or your spouse, partner or co-purchaser must not have previously owned an interest in land in Australia which had a residence on it, before 1 July 2000.
- You or your spouse or partner cannot have lived in a residential property which you owned from 1 July 2000.
- You or your spouse, partner or co-purchaser may not have claimed the grant previously.
- You must occupy your first home as your principal place of residence within 12 months of the construction or purchase of your home and the minimum period of occupancy is six continuous months.
There are other state specific conditions as well, which will depend on the state you’re buying in.
To help you to understand the First Home Owners Grant we have compiled a list of answers to some of the most frequently asked questions.
Where to from here?
Yes, buying your first home is hard, and yes, saving for your first home deposit is a monumental task.
But while life can be a hard and expensive journey, you can make it easier and more affordable if you hold all the information. Find out more about buying your first home using our first home buyers guide.
It's also useful to compare what home loan rates are to get an idea of what monthly repayments you'll be paying.
Use the table and calculator below to do this.
First Home Buyer Home Loans Comparison
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Saving money for any goal can require dedication, control and perseverance which many of us can find lacking in ourselves especially when the goal is as large as a home loan deposit. That is why the Australian Government introduced the First Home Saver Account in 2008, to make it easier for young Australians to build their home deposit by locking away funds until they're ready to purchase, and even offering government contribution incentives.
However, the Australian government abolished the FHSA scheme on July 1, 2015. This means that all first home saver accounts are now treated like an ordinary held with a provider, and;
- Restrictions on withdrawals were removed on July 1, 2015. Account holders could withdraw and use the balance of their account as they see fit from this date onwards.
- No government FHSA contributions were paid for the 2014-2015 financial year.
- If you were entitled to FHSA contributions for a previous period, the government continued to pay these. If this applies to you, then you need to ensure that you claim any outstanding government FHSA contributions on or before June 30, 2017.
- Tax and social security concessions ceased from July 1, 2015.
From July 1, 2015:
- You can use the funds in your account for any purpose.
- Tax concessions cease.
- Your account is included in any income and asset tests that apply to government benefits.
- You must report interest from your account when you complete your tax return (starting with interest earned in the 2015-2016 income year).