The First Home Owner Grant (FHOG) is a one-off payment provided by your state government to help first-home buyers. You are not required to return the amount received under the grant or pay any tax on it.
In addition to the First Home Owner Grant, some states also offer stamp duty concessions to first-home buyers to reduce the upfront costs of buying a home
How much is the First Home Owner Grant?
The FHOG is a state-sponsored scheme, which means each state can set a different amount and eligibility criteria for the grant. Here’s a brief summary of how much is the grant in different states and territories.
Australian Capital Territory
From 1 July 2019, the First Home Owner Grant is no longer available in the ACT. However, you may be eligible for a stamp duty exemption (up to $35,910) under the Home Buyer Concession Scheme if your annual household income is less than $160,000.
Visit the ACT Revenue Office website to find out whether you are eligible for a stamp duty exemption.
New South Wales
You may be able to access a $10,000 grant if you are first-home buyer purchasing a home in NSW. However, the grant is only available if you are buying or building a new home. Additionally, there is a cap on the property’s value you can purchase to remain eligible for the grant. If you are buying a new home, it cannot be valued at over $600,000. For those constructing a house, the total value of the property should remain under $750,000.
It’s also worth checking whether you are eligible for a stamp duty concession under the First Home Buyer Assistance Scheme. Currently, you are not required to pay any stamp duty in the state if the house you are buying is worth less than $650,000. The exemption is available for both established and new homes.
Northern Territory
You can apply for a First Home Owner Grant of $10,000 if you are buying or building a new home in the Northern Territory. There is no grant available for the purchase of established homes.
No stamp duty concessions are currently available in the region.
Queensland
The Queensland state government offers first-home buyers a generous $15,000 grant for purchasing or building new homes. However, you are not eligible for the grant if the value of your property exceeds $750,000.
If you are first-home buyers, you may also qualify for a stamp duty concession under the first home concession scheme if your property’s value is $550,000 or less.
South Australia
While South Australia doesn’t offer any stamp duty concessions, it does provide eligible first-home buyers with a grant of up to $15,000 to purchase or build a new home. However, the property’s value must be less than $575,000 to be eligible for the grant.
Tasmania
If you are first-home buyers purchasing or building a residential home in Tasmania, you may be eligible for a $30,000 First Home Owner Grant. However, FHOG is not available for the purchase of established homes. Still, you may qualify for a 50% stamp duty concession if you are buying an established home worth $500,000 or lesser.
Both schemes are scheduled to end on 30 June 2022
Victoria
If you are a first-home buyer purchasing or building a new home worth $750,000 or lesser, you may be eligible for a $10,000 First Home Owner Grant.
If you are buying an established dwelling, you may be able to save some money with the principal place of residence (PPR) duty exemption if the home is valued at $600,000 or less. A duty concession is also available for first-home buyers purchasing off-the-plan. Visit the State Revenue Office of Victoria’s website to determine whether you qualify for a stamp duty exemption or concession.
Western Australia
In Western Australia, a $10,000 First Home Owner Grant is available to first-home buyers purchasing or building a new home. However, the property you are buying must be valued at less than $750,000 if it’s located south of the 26th parallel of south latitude, or $1,000,000, if it’s located north of the 26th parallel of south latitude.
While you won’t receive the grant for purchasing an established home, you may be eligible for a discounted First Home Owner Rate of Duty in the state.
Am I eligible for the First Home Owner Grant?
Each state and territory has a distinct set of conditions you must fulfil to be eligible for the First Home Owner Grant. However, some of the rules are common across the country, such as:
- To qualify for the grant, you must be a natural person (not a company or a trust) aged 18 or above.
- Only citizens and permanent residents may apply for the grant. If you are applying with a partner, at least one of you must be a permanent resident or citizen.
- Neither you nor your partner with whom you are applying should have owned or co-owned a home in any state or territory or used the FHOG in the past.
- The grant is only meant for owner-occupiers. You may not apply for the grant if you are purchasing an investment property.
- Depending upon your state, you will need to live in the home for at least six months after the purchase to remain eligible for the grant.
The above list of requirements is not comprehensive. It is advisable to check the specific website for your state to confirm your eligibility for the grant. Once you have checked your eligibility, you can lodge the application for the grant through your state or territory authority. Alternatively, you could connect with a broker to help lodge your application and find the right home loan for your requirements.
By Vidhu Bajaj,
Hashching Content Writer
Related Links
