Your Guide to the First Home Owner Grant
What is the First Home Owner Grant?
The First Home Owner Grant or FHOG is a national scheme that provides financial assistance to first home buyers who are buying or building their first home. This is a one-off payment that varies depending on the state or territory you are buying in. The eligibility rules will also vary depending on your location.
Here is some basic information about the FHOG in different states and territories in Australia:
Australian Capital Territory
The First Home Owner Grant in the ACT provides financial assistance of $7,000 to eligible people buying a new or substantially-renovated property valued at $750,000 or less.
New or substantially renovated homes include off-the-plan properties, established homes that haven’t been sold or previously occupied as a place of residence, and properties that have been substantially renovated but haven’t been sold or occupied as a place of residence.
You must reside in the property for a continuous period of at least one year. The date you sign and exchange the contract is the commencement date. If you’re building your home, the commencement date will start on the day of laying the foundations.
The grant amount in the ACT generally changes every 12 months. To get the latest information you can visit the ACT Revenue Office website.
New South Wales
The First Home Owner Grant scheme in NSW amounts to $10,000 for transactions made on or after January 1, 2016. The value of the new property should not exceed $650,000. If you decide to build a home, the total value should not surpass $750,000.
To be eligible for this grant, you or one of the homeowners should occupy the property for a continuous period of at least six months. Additionally, you must have not received an FHOG in any State or Territory, unless subsequently repaid.
First home buyers will also benefit from stamp duty concessions if the home is valued at $650,000 or less, or if the vacant land is priced at no more than $350,000. To know more about the eligibility and criteria for the FHOG in NSW, visit the NSW Revenue Office website.
The FHOG in the Northern Territory offers up to $26,000 for newly built or new homes only. This is the biggest grant in the country. Your income and the price of the property will not affect the FHOG. However, the grant is only applicable to eligible first home buyers that are purchasing new homes that haven’t been previously occupied or sold as a place of residence.
It is a requirement of the grant that the homeowner must reside in the property continuously for at least six months. There is also a first home owner’s discount that provides a stamp duty discount of up to $23,982 if the buyer purchases a property over $600,000.
You can get more information at the Northern Territory website.
The First Home Owner Grant in QLD has a maximum amount of $20,000. The property you’re buying or building must not exceed $750,000 in price. Applicants in QLD must reside in the home continuously for at least six months.
If you’re a first home buyer and you’re buying a property that’s worth less than $504,000, or a piece of vacant land worth less than $250,000, you can get a full stamp duty concession. To be eligible, you and your spouse must not have previously owned a property in Australia.
You can visit the Queensland Government website for more information.
The First Home Owner Grant in South Australia is $15,000 for the purchase of an established home or a construction of a new home. The value of the property should be no more than $575,000 to be eligible for this grant.
Applicants should reside in the property continuously for six months. Stamp duty concessions are available for those planning to buy off-the-plan in specified areas. This concession can be up to to $21,330.
You can check for updates by visiting the Revenue South Australia website.
In Tasmania, the FHOG is at $20,000. The grant will be available until June 30, 2019. After that year the grant will be at $10,000.
The First Home Owner Grant is a one-off payment for eligible applicants who buy or build a new home. For applicants undergoing construction, the home must be built within 24 months of entering into the contract to remain eligible. The applicant must live in the property for at least six months.
For more information, you can visit the website of the State Revenue Office of Tasmania.
You can receive up to $20,000 in Victoria if you are buying or constructing a property valued no less than $750,000. However, this will depend on where you buy.
If you purchase in regional Victoria your FHOG can amount to $20,000. If you’re buying outside regional Victoria you will receive $10,000. The applicant must live in the property continuously for at least 12 months after buying it.
The Victorian FHOG is only available for new homes that haven’t been occupied. But first home buyers in Victoria are exempted from paying stamp duty whether the house is new or established. The house must cost less than $600,000 to get this benefit.
For additional information, you can visit the website of State Revenue Office of Victoria.
The size of the First Home Owner Grant in WA varies depending on where you are buying or building. You can receive a grant amounting to $10,000 if the property is valued at $750,000 and is located south of the 26th parallel of latitude - this includes Perth. The grant is the same size if you are buying a property north of the 26th parallel of latitude up to a value of $1 million.
FHOG is not applicable if you buy an established home or a home that has been occupied previously. However, you may be eligible for the First Home Owner Rate of Duty (FHOR) if the established house costs no more than $530,000.
Apart from the $10,000 FHOG, there is an additional $5,000 boost for those building a new home or buying off-the-plan. The construction of the new home must start within 26 weeks of the date of the contract and be completed within 18 months of commencing construction.
Applicants must live in the home for six months.
For more information, visit the Government of Western Australia’s website.
How to apply for FHOG
You can visit your state government's website to see if you qualify for the FHOG. If you meet the criteria, you can lodge your application directly to the state or territory government, or ask your home loan lender if they can lodge the application for you.