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:

• Eligible applicants will be entitled to a one-off $7,000 payment towards the construction or purchase of an existing home (not land).

• Eligible applicants must be natural persons, who are Australian citizens or permanent residents.

• To qualify for assistance, neither the applicant nor their spouse (or de facto) must have previously owned a home, either jointly, separately or with some other person.

• Entering into a binding contract or commencement of building, in the case of owner-builders, must have occurred on or after 1 July 2000.

• An eligible home will be located in Australia and will be a new or established house, home unit, flat or other type of self contained fixed dwelling that meets local planning standards.

• An eligible home must be intended to be a principal place of residence and occupied within a reasonable period.

• Assistance will not be means tested.

• Joint applicants will be restricted to a single application for a single property and only one payment  will be made.