August 12, 2013
The Western Australian State Budget, which was announced last week, has proposed changes to the First Home Owners Grant ("FHOG").
Currently first home buyers have access to a FHOG of $7,000 to be used to assist with purchasers of properties up to the value of $750,000 (or to a value of $1,000,000 if the property is located north of the 26th parallel).
Announced in the recent State Budget was a proposal to increase the FHOG to $10,000 for first home owners building or buying a new home. However also announced was a proposal to reduce the FHOG to $3,000 for those first home buyers that buy an existing property. These changes are expected to come into effect on 15 September 2013.
Stamp duty exemptions on purchases of homes by first home buyers will continue to be exempt on purchases up to $500,000 (phasing out at $600,000) and on vacant land purchasers up to $300,000 (phasing out at $400,000).