First Home Loans Grant

To offset the impact of the introduction of the goods and services tax (GST), the Commonwealth has requested that the States and Territories assist first home buyers through the establishment of the First Home Owner Grant (FHOG).

The First Home Owner Grant applies from 1 July 2000. Each State and Territory Revenue Office is responsible for administrating the grant in their respective jurisdictions.

The broad principles of the grant are:

You are eligible for the Australian Government’s First Home Owner Grant and Boost if you:

• Are an Australian citizen or permanent resident
• Are buying or building your first home in Australia
• Have the intention of occupying the property as your principal place of residence within 12 months of the settlement.

First Home Owner Boost extended

In October 2008, the Australian Government introduced a Boost to the First Home Owner Grant giving eligible first home buyers' additional funds towards their first home purchase.

The FHOB will be gradually phased out. New details regarding the Boost are as follows:

Until 30 September, eligible first home buyers will receive:
 

• $21,000 ($7,000 FHOG + $14,000 FHOB) of assistance if they buy a newly built home
• $14,000 ($7,000 FHOG + $7,000 FHOB) of assistance if they buy an existing home

From 1 October until 31 December, eligible first home buyers will receive:
 

•  $14,000 ($7,000 FHOG + $7,000 FHOB) of assistance if they buy newly built homes
•  $10,500 ($7,000 FHOG + $3,500 FHOB) of assistance if they buy existing homes
• The First Home Owners Boost will no longer be available after December 31, 2009

How the changes will effect you

• Contracts must be exchanged before the stated cut-off dates
• Some State Governments have announced additional incentives for new homes
• To be eligible for the full amount you need to act quickly before Sept 30, 2009

Other things to consider:

If you are buying the property in conjunction with others, they must also meet the same criteria for the Grant to be applicable.

The grant assistance will not be means tested and joint applicants will be restricted to a single application for a single property and only one payment will be made. If the consideration of the home is less than the grant amount paid to the applicant will equal the consideration.

You may be eligible for the Federal Government First Home Owner Scheme (FHOG) or stamp duty concessions. For more information, please contact your local State or Territorial Revenue Office: