FHOG PROPOSED LEGISLATION CHANGES

August 08, 2013
Tony Wills

A $7,000 FHOG is currently available for first home buyers who purchase a property up to the value of $750,000 (or up to $1 million if the home is located north of the 26th parallel. The Government will increase the value of the FHOG to $10,000 for first home owners purchasing or building a new home. Purchasers of an established home will receive a $3,000 FHOG. Subject to the passage of the required legislative amendments, these changes are intended to take effect from 15 September 2013. Providing a higher FHOG for new homes is expected to increase housing supply as first home buyers will have a greater incentive to build a new dwelling rather than purchase an established home. In 2012-13, around three-quarters (14,140) of FHOG recipients purchased an established home. Unlike in most other jurisdictions, first home buyers of established homes in Western Australia will continue to receive a FHOG (albeit reduced). In addition, first home buyers will continue to be exempt from transfer duty on new and established home purchases up to $500,000 (phasing out at $600,000) and on vacant land purchases up to $300,000 (phasing out at $400,000).Compared to other jurisdictions, first home buyers of an established home in Western Australia will continue to receive generous State government assistance.

Posted in: First home buyers

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