First Home Owner Grant (FHOG)
What is the First Home Owner Grant (FHOG)?
The FHOG scheme is a national scheme funded by the Federal Government, but administered through each state or territory Revenue Office. The grant offers first home buyers $7,000 towards their first home.
Are you eligible for the First Home Owners Grant?
You are eligible for the Australian Government’s First Home Owner Grant 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 and living in it continuously for at least 6 months.
Find out if you qualify for First Home Owner's Grant today.
Other things to consider:
If you are buying the property in conjunction with others, they must also meet the same criteria for the First Home Owners Grant to be applicable.
If you’re eligible you can receive the Grant regardless of your income and the area in which you are planning to buy or build. The Grant is not means tested and no tax is payable on it.
However, there is a cap on the maximum property price a first home buyer can pay and still be eligible for the grant. The caps vary by state and are as follows:
- Australian Capital Territory: $750,000
- Queensland: $750,000
- New South Wales: $835,000
- Northern Territory: $750,000
- South Australia: $575,000
- Tasmania: No limit
- Victoria: $750,000
- Western Australia: $750,000 or $1,000,000 for property north of the 26th parallel
Other First Home Buyer benefits
In addition to the one-off First Home Owner Grant of $7000, there are also other grants and benefits provided by state governments to first time buyers:
- In Australian Capital Territory, concession to stamp duty are available to first home buyers for the purchase of a property up to the value of $470,000; or a vacant block of land worth up to $260,000. To be eligible, the combined income of the property owner(s) cannot exceed $120,000 where there are no dependent children; where there are dependent children, the income limit increases incrementally to up to $136,650.
- In Queensland, you can get duty concession of up to $15,525 on properties worth up to $509,999.99; and up to $6,575 on vacant land valued at up to $260,000. In this scenario, you may be entitled to a combined benefit of up to $22,525 when pooled together with the FHOG.
In January 2012, the QLD state government announced an extension of the $10,000 Building Boost Grant to 30 April 2012. This grant is available to people who sign home-building contracts or buy a new residence before this date.
- In New South Wales, the First Home-New Home scheme offers an exemption from duty for first home buyers purchasing a new home valued up to $500,000 and vacant land up to $300,000. This scheme offers concessions on transfer duty for new homes valued between $500,000 and $600,000 and vacant land valued between $300,000 and $450,000. Together with the FHOG, benefits of up to $24,990 are available to first home owners in NSW. Keep in mind exemptions or concessions do not apply to the purchase of an existing dwelling.
- Northern Territory provides a First Home Owner Concession (FHOC) on stamp duty. From 4 May 2010, the FHOC is an amount up to $26,730 off the duty payable. This concession is not means tested, but the home or land must not exceed $750,000 and $385,000 in value respectively.
There is also a $10,000 BuildBonus grant which was introduced in May 2011 to stimulate construction of new homes. On 29 December 2011 the NT government extended this grant to 30 June 2012 and raised the property value threshold to $600,000.
The NT Government also funds the HOMESTART NT Scheme designed to help low to middle income earners purchase their first home and those who do not currently own an existing property, but have previously owned property and want to start afresh. The Scheme comprises three loan products and is administered by TIO.
- In South Australia, a First Home Bonus Grant of $8,000 is available for first homebuyers who enter into a contract to purchase or build a new home worth up to $400,000 between 17 September 2010 and 30 June 2012. For properties worth over $400,000, the Bonus Grant gradually decreases, cutting out at $450,000. From 1 July 2012 the Bonus will be reduced to $4,000 and will then be fully abolished from 1 July 2013. At present, the Bonus Grant combined with FHOG offers benefits of up to $15,000.
- In Victoria you can get a First Home Bonus of up to $13,000 for the construction of new homes valued up to $600,000 for contract entered into between 1 July 2010 and 30 June 2012. Those building their first home in regional Victoria could receive an extra $6,500 under the Regional Bonus scheme. When added to the FHOG, this can equate to benefits of up to $26,500. Eligible Victorian first home buyers may also receive a reduction of duty.
- In Western Australia, if you are eligible for a First Home Owners Grant, you pay no stamp duty on homes valued up to $500,000 and vacant land valued up to $300,000. For example, on a $250,000 property, the concessions can be as much as $7,000. In this instance, benefits of up to $14,000 are available when combined with the FHOG.
An additional $2,000 in the form of Home Buyers Assistance Account is also available through the Real Estate & Business Agents Supervisory Board. The scheme provides a grant of up to $2,000 to cover the expenses first home buyers may encounter when they purchase an established or partially built home through a licensed real estate agent. This Account is only available for properties up to $400,000. It is not available for vacant land or house and land packages.
- In Tasmania, first home buyers are eligible for a Duty Concession on the purchase of a property. There are two types of concessions available. A concession of up to $4,000 will be applied to the purchase of established dwellings up to the value of $350,000. A concession of up to $2,400 is available for the purchase of vacant land valued up to $175,000.
Still wondering what it's all about?
The FAQs below may help answer your key questions. And don't forget, your Mortgage Choice broker can help you with your application and provide further information.
Who is eligible for the grant?
To be eligible for the grant, you must be an Australian citizen or a permanent resident of Australia. You must be buying or building your first home in Australia and you must have the intention of living in the home as your primary residence within 12 months of settlement. There are no restrictions as to your income or the area in which you plan to buy or build. Nor are there restrictions regarding the value of the property. However, if you are planning to purchase your first home with another person, you must both meet the eligibility requirements to receive the grant.
There are other factors that may also be relevant, so be sure to speak with a Mortgage Choice Consultant.
How do I apply for the grant?
In most cases the lenders are able to act as agents for the Revenue Office and your Mortgage Choice Consultant can help you complete the relevant forms as part of the home loan application.
This allows the First Home Owner Grant funds to be available at settlement or at the first progress payment if you are building your home.
If you apply directly to the Revenue Office funds will not be available until after settlement or completion of the home if you are building.
Are there other First Home Owner grants or concessions available?
In addition to the grant available from the Federal Government there are a number of state initiatives aimed at making your first home more affordable. To find out what concessions are available in your state or territory contact your Mortgage Choice Consultant.
Find out if you qualify for the First Home Owner's Grant today.
Need more information?
For more information on the details, visit First Home Owners Scheme.
Alternatively, visit each of these references for more details:
- Australian Capital Territory: ACT Revenue Office
- Queensland: Office of State Revenue
- New South Wales: NSW Office of State Revenue
- Northern Territory: Northern Territory Treasury
- South Australia: RevenueSA
- Tasmania: First Home Owners Grant Tasmania
- Victoria: The State Revenue Office (SRO)
- Western Australia: First Home Owners Grant Western Australia
It’s a great leg up to help you get into your first home, and your Mortgage Choice broker can help submit your First Home Owners Grant application today.