If you’re a first home buyer in NSW, find out what grants and concessions may be available to you if you’re eligible for the First Home Owner Grant (FHOG)
Under the FHOG in NSW, there are several schemes which have been developed to help first home buyers get into the property market sooner: The First Home-New Home Scheme, the First Home Owner Grant (New Homes) Scheme, and the New Home Grant Scheme.
Below we outline the different schemes available for NSW first home buyers to help you decide which one might be relevant for you.
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The first home owner grant (FHOG) in NSW
The current FHOG, called the 'First Home Owner Grant (New Homes) Scheme' applies only to those buying new homes, and provides eligible purchasers with $10,000 to go towards purchasing or building a new home. This applies to anyone with an eligible transaction occurring after 1 January 2016.
If the eligible transaction occurred between 1 October 2012 - 31 December 2015, then the grant amount is $15,000.
To be eligible for the FHOG, the value of the home cannot exceed certain cap amounts:
| Transaction period | Cap amount |
|---|---|
| 1 July, 2017 onwards | $600,000 for purchase, $750,000 for construction |
| 1 October, 2012 - 30 June, 2017 | $750,000 |
| From 1 January, 2011 - 30 September, 2012 | $835,000 |
| From 1 January, 2010 - 31 December, 2010 | $750,000 |
| From 1 July, 2000 - 31 December, 2009 | No cap applicable |
(Source: The NSW State Office of Revenue)
Back to topFirst Home Buyers Assistance scheme
The First Home Buyers Assistance Scheme commenced from 1 July 2017. The scheme offers eligible buyers exemptions or concessions on property transfer duty. This includes an exemption from stamp duty for homes valued up to $650,000 and concessions on duty for homes valued between $650,000 and $800,000.
New homes
If you want to estimate the concession on a new home valued between $650,000 and $800,000, take the purchase price and multiply it by 21% then subtract $136,510.
The table below outlines the duty concessions available for new homes:
| Purchase Price | First Home - New Home Duty |
|---|---|
| $650,000 | $0 |
| $660,000 | $2,090 |
| $670,000 | $4,190 |
| $680,000 | $6,290 |
| $690,000 | $8,390 |
| $700,000 | $10,490 |
| $710,000 | $12,590 |
| $720,000 | $14,690 |
| $730,000 | $16,790 |
| $740,000 | $18,890 |
| $750,000 | $20,990 |
| $760,000 | $23,090 |
| $770,000 | $25,190 |
| $780,000 | $27,290 |
| $790,000 | $29,390 |
| $800,000 | No discount |
(Source: The NSW State Office of Revenue)
Vacant land
The First Home-New Home 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.
Back to topEligibility for FHOG
Your eligibility for the FHOG 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:
- Each applicant is a natural person (e.g. not a company)
- 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 owned a residential property in Australia before July 2000
- All applicants have not previously owned a residential property for a continuous period of at least six months
- All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory
- At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months
To find out if you’re eligible for the FHOG, please visit the NSW State Office of Revenue and review the eligibility requirements for the scheme you’d like to apply for.
Check out our complete FHOG guide.
Back to topHow to apply for the FHOG
If you’d like to apply for the FHOG, you can do so through your financial institution or through NSW Office of State Revenue.
Keep in mind that you can only lodge an application with NSW Office of State Revenue once you are registered on the property title.
Back to topFAQ about the FHOG
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I am over 18 and a carpenterand have never owned anything, if I purchased an incomplete house, that was nearly at lockup, that I would finish building as an owner builder, do I qualify for the FHOG?
I would be living in it, whilst completing it and It will be estimated at approx $550K value on completion.
Is there anything else I would qualify for?
Hi David,
Thanks for your inquiry
Yes, an unfinished home is still an eligible home to purchase with the FHOG. Provided that at least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months of settlement or construction of the home.
Hope this information helps
Cheers,
Arnold
If I bought vacant land for less than 150k, and I intended to build my first home on that land within 5 years, can I claim the FHOG for the house that I build?
Hi Neatz,
Thanks for getting in touch!
The First Home Owner Grant (New Homes) Scheme’ applies only to those buying new homes, and provides eligible purchasers with $10,000 to go towards purchasing or building a new home. This applies to anyone with an eligible transaction occurring after 1 January 2016.
Vacant land
The First Home-New Home 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.
Eligibility for FHOG
Your eligibility for the FHOG 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:
Each applicant is a natural person (e.g. not a company)
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 owned a residential property in Australia before July 2000
All applicants have not previously owned a residential property for a continuous period of at least six months
All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory
At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months
For any clarifications, feel free to message us again.
Cheers,
Nikki
I purchased a property as investment and now would like to buy a brand new property as my first home where live in. Not sure am I still eligibility to have the first home buyer scheme ? If so, which one should it be and what is the term and conditions.
Hi Cocoa,
Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?
Each state has its own requirements to be eligible for the FHOG. Generally, the FHOG is only available for the purchase of owner-occupied properties, not investment properties.
For more information, you may refer to this page.
Hope this helps! Feel free to message us anytime should you have further questions.
Cheers,
Nikki
I will be receiving a settlement from a Government agency and will be able to purchase my first home possibly for the total amount and will not have excess funds after the purchase .
I’m I entitled to first home buyers grant.
Purchase will be on South Coast NSW
Hi Greg,
Thanks for getting in touch.
Basically, FHOG scheme differs from state to state. If you are pertaining to your eligibility for the FHOG available in NSW, you must meet all the criteria outlined on this page. You can also find the steps on the same page on how you can for the grant.
Moreover, we also have a comprehensive guide about FHOG in NSW above which you may find helpful.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi, just a quick question…
I currently own an investment property (purchased at the start of 2017) which I have never used for residential purposes, I own no other properties and currently live in a rental property.
Does this mean I would be eligible for the FHOG on the next property I purchase provided it is purchased to live in? Would I also be eligible for strata concession on this property?
Any help would be appreciated as there seems to be no straight answer that I can find so far..
Thanks
Hi Kayla, thanks for your inquiry.
That is correct. The FHOG provides eligible purchasers with $10,000 to go towards purchasing or building a new home. This includes an exemption from stamp duty for homes valued up to $650,000 and concessions on duty for homes valued between $650,000 and $800,000.
The main requirements (among other criteria) to receive FHOG include:
Each applicant is a natural person (e.g. not a company)
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 owned a residential property in Australia before July 2000
All applicants have not previously owned a residential property for a continuous period of at least six months
All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory
At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months
In regards to strata concession, we were unable to find anything to this detail upon researching. It would be best to speak to your property lawyer to discuss this benefit.
Thanks,
Jonathan
Hi,
(1)Can I use my personal/voluntary super contributions as additional contributions towards the 1st Home Buyers Scheme
(2) When can these funds be used immediately or do I have to wait till 1/7/18
(3) Is $30,000 the maximum amount I can put against the Scheme
Many Thanks
Hi Wal,
Thanks for your questions.
Yes, you can make voluntary contributions into your super fund for the purposes of saving for a home deposit, up to $15,000 per year and up to $30,000 in total. Kindly note though, that the overall cap of $25,000 a year for all voluntary contributions still remains; if you put $15,000 into your super for your deposit, you’ll only be able to put $10,000 in as a top-up for your long-term superannuation during that year. Moreover, this First Home Super Saver Scheme will apply from 1 July 2017. Withdrawals will be allowed from 1 July 2018 for use as a home deposit. You can read our article on Budget 2017 this page for more information.
I hope this has helped.
Cheers,
Liezl