First Home Owners Grant in NSW

In NSW, there are two schemes to help first home buyers get into the property market: The First Home Owner Grant (New Homes) Scheme, and the First Home Buyers Assistance Scheme. The first scheme is a cash grant and the second is a tax concession or discount.

Some buyers may be eligible for both.

First Home Owner Grant (New Homes) Scheme in NSW

First Home Owner Grant (New Homes) Scheme is a $10,000 grant for first home buyers who are buying or building a new home. You can qualify for the scheme if you are:

• Buying a newly constructed (or substantially renovated) home valued at no more than $600,000.
• Buying land, and the combined value of your building and land are no more than $750,000.

The grant is available for eligible property transactions occurring after 1 January 2016.

• You cannot qualify for the grant if you are buying an existing home.

^{Source: Revenue NSW}

First Home Buyers Assistance Scheme

The First Home Buyers Assistance Scheme allows eligible first home buyers in NSW to get an exemption or concession on transfer duty (stamp duty). Homes valued at less than $650,000 qualify for a complete exemption and properties valued between $650,000 and $800,000 qualify for a reduced transfer duty.

Unlike the FHOG, you can buy an existing home and still receive a concession of exemption.

The table below outlines the duty concessions available:

Source: Revenue NSW

Vacant land

The First Home Buyers Assistance Scheme also provides a duty exemption on vacant land valued up to $350,000 and concessions for vacant land valued between $350,000 and $450,000.

Learn more about stamp duty in NSW

Eligibility for first home owners grants in NSW

Your eligibility for these two schemes is determined by the conditions of the individual scheme, the property value and the date in which you entered into the eligible transaction.

Generally, you’ll need to satisfy the following (among other criteria) to qualify:

• At least one applicant is a permanent resident or an Australian citizen
• Each applicant must be aged 18 years or older
• All applicants have not previously owned a residential property in Australia
• All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory

Living in the property

• You must live in the property for at least six continuous months, and you must move in within 12 months from purchase.

To find out if you’re eligible for the FHOG, please visit the Revenue NSW and review the eligibility requirements for the scheme you’d like to apply for.

Check out our complete FHOG guide.

How do I apply for the FHOG?

You can apply for NSW first home buyer schemes through the Revenue NSW. There are two forms you need to complete, and you can lodge with the help of your solicitor or conveyancer after you've exchanged contracts with the property seller.

You can only lodge an application with NSW Office of State Revenue once you are registered on the property title.

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FAQ about the FHOG

• What happens If I move out of my home in the first 12 months?

  If you have lived in your home for a continuous period of six months, you may keep the grant. However, if you move out before this time, you will be required to repay the grant.

• Does my income affect my eligibility?

  No. The FHOG grant is not means tested.

• What if I'm buying a home that isn't new?

  You can't claim the FHOG on an existing property. You can only claim it on a newly built property or one where you are the first person to live in it.

• Do I have to pay income tax on the grant?

  No. The FHOG grant is tax-free.

• When do I have to commence building on vacant land?

  There is no time limit on when you need to commence building the home. However, the Chief Commissioner must be satisfied that the vacant land is intended to be used as the site of a new home which will be occupied by the applicants.

• When does my application need to be lodged?

  Applications must be lodged within 12 months of completion or settlement of your home.

• If I inherited a property, can I receive the FHOG for this property?

  No. You must be a buyer or builder of the property in order to receive the FHOG. If you received it as a gift or inheritance, you are not eligible for the grant.

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