Buying: First Home Buyers

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 broad principles of the grant are:

• Eligible applicants from 1 July 2000 are entitled to a one-off $7,000 payment.
• Eligible applicants must be natural persons who are Australian citizens or permanent residents, who are buying or building their first home in Australia. Requirements vary between jurisdictions regarding the number of applicants who must be an Australian citizen or permanent resident and how old an applicant must be. Please select the State or Territory under More Information below to determine eligibility.
• To qualify for assistance, neither the applicant nor their spouse (or de facto) must have owned a home prior to 1 July 2000, either jointly, separately or with some other person.
• Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.
• Neither the applicant nor their spouse (or de facto) must have claimed this grant previously.
• 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 lawfully can be used as a place of residence.
• An eligible home must be occupied by the applicant(s) as their principal place of residence within 12 months of settlement or completion of construction of the home. There are minimum periods of occupancy required by jurisdictions. Please select the State or Territory under More Information below to see if a minimum period applies.
• Application for the grant must be made within 12 months of completion of construction or settlement of the home.
• Assistance will not be means tested.
• There is no tax payable on the grant.
• Joint applicants will be restricted to a single application for a single property and only one payment of $7,000 will be made.

If the consideration of the home is less than $7,000 then the grant amount paid to the applicant will equal the consideration.

More information available at http://www.firsthome.gov.au/ or for South Australian Residents www.revenuesa.sa.gov.au