First Home Buyer Assistance

It's a real mess trying to sort this out and keep it up to date, as new schemes are announced, old schemes quietly disappear and others are renamed to be announced as new policy.

If any information is missing, wrong or outdated, please let us know, so we can update the page for the benefit of others.

Both the federal and state and territory governments have first home buyers assistance schemes.
Read the Federal one first, then go to:

• New South Wales
• South Australia

Federal:

The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 by the Howard Government to offset the effect of the GST on home ownership.
It is a national scheme funded by the States and Territories and administered under their own legislation.
Under the scheme, a one-off grant of up to $7000 is payable to first home owners that satisfy all the eligibility criteria.
The grant applies to residential dwellings only and does not apply to vacant land.

Eligibility Criteria (FHOGS):

• Each applicant is a natural person and not a company or trust
• At least one applicant is a permanent resident or Australian citizen.
• Each applicant is at least 18 years of age.
• All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately, or with some other person, in any state or territory of Australia before July 2000.
• All applicants and/or their spouse/de facto have not previously owned a residential property jointly, separately, or with some other person, in any state or territory of Australia, and occupied that property for a continuous period of at least six months.
• Each applicant has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1July 2000. In the case of an owner-builder, laying the foundations commenced on or after 1 July 2000.
• The total value of the property does not exceed the $750,000 cap for eligible transactions which commenced on or after 1 January 2010.
• This is the first time an applicant and/or their spouse/de facto will receive a grant under the First Home Owner Grant Act 2000 in any state or Territory (unless subsequently repaid).
• At least one applicant will occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of settlement or construction of the home. Where an applicant was a member of the permanent forces of the Australian Defence force and all applicants were enrolled on the NSW electoral roll, as at the commencement date of the eligible transaction, dated on or after 21 October 2009, then all applicants are exempt from the residence requirement.

First Home Owners Boost

(This Program ceased on 31st December 2009 and is no longer available to new applicants - We left it on the page for the sake of completeness only)

The Rudd Government introduced an additional Grant to first home buyer.
The grants are available to first home owners during the stimulus period 14/10/2008 to 30/6/2010.
This program was cut short and ceased on 31st December 2009.
It may still be applicable to those entered into contracts before that date.

Details of the program:

If you are a first home buyer you may be eligible for additional support from the Australian Government through the First Home Owners Boost.

• First home buyers who purchase established homes will receive a boost of $7,000 that will double the grant to $14,000
• First home buyers who build a new home or purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000.

To be eligible for the Boost, you must enter into a contract to purchase an existing home, construct or purchase a new home or buy 'off the plan' between 14 October 2008 and 30 June 2009 inclusive, and:

• be at least 18 years of age
• be an Australian citizen or permanent resident
• not have previously received the First Home Owners Scheme grant or have a spouse (or de facto) who has previously received the grant
• generally not have previously owned and lived in a home, or have a spouse (or de facto) who has previously owned and lived in a home in Australia and
• live in the home for a continuous period of at least 6 months, commencing within 12 months after completion or settlement.

Purchasing an existing home
If you are a first home buyer who purchases an existing home, you may receive a total payment of $14,000 ($7000 First Home Owners Scheme grant + $7000 First Home Owners Boost).

Purchasing a new home
If you are a first home buyer who purchases a new home, you may receive a total payment of $21,000 ($7000 First Home Owners Scheme grant + $14,000 First Home Owners Boost).

For owner-builders, completion of the home must be within 18 months of commencement.

For a new home purchased 'off the plan' (for example a unit in a large complex), the contract must stipulate that the home will be completed by 31 December 2010. If the contract does not make this stipulation, then the actual completion of the home must occur by 31 December 2010.

The Boost is not means tested and can be used to buy a property of any value.
For links to official websites see left column

New South Wales

The following table identifies the grants available to first home owners during the stimulus period 14/10/2008 to 30/6/2010.
The amount payable is determined by the date of your eligible transaction.

First Home Owner Grant property value cap

Effective from 1 January 2010, the New South Wales government has introduced a property value threshold of $750,000;
only properties below this value may be eligible for the first home owner grant. (the $7,000)

New Home Buyers Supplement

(The NSW Government announced at the end of May that it would extend the New Home Buyers Supplement until 30 June, 2010.)

First home buyers in NSW who qualify for the First Home Owner Grant and are building their first property or buying a newly constructed property
that has never been lived in before AND who are also eligible for the Federal Government’s First Home Owners’ Grant,
will be eligible for an additional $3,000 payment known as the NSW New Home Buyers Supplement.

The $3000 New Home Buyers Supplement is in addition to the $7000 First Home Owner Grant and the Federal Government’s First Home Owner Boost (if applicable).

NSW First Home Plus

provides exemptions or concessions on transfer duty for eligible first home buyers.
This includes vacant land on which you intend to build your first home.
There are no income or assets tests to qualify for the benefits.

The First Home Plus scheme provides exemptions or concessions on transfer duty for people who are buying their first home in NSW.
This includes buying vacant land on which you intend to build your first home.
The First Home Plus Scheme provides eligible purchasers with exemptions on transfer duty on homes valued up to $500,000
and concessions on duty for homes valued between $500,000 and $600,000.

Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $300,000,
and will receive concessions on duty for vacant land valued between $300,000 and $450,000.

• the contract and the transfer must be for the purchase of the whole of the property
• all purchasers must be ‘eligible purchasers’
• at least one eligible purchaser must occupy the home as their principal place of residence for a continuous period of six months,
  commencing within 12 months of completion of the agreement
• an ‘eligible purchaser’ is a natural person (i.e. not a company or trust) at least 18 years of age who has not, and whose spouse/de facto has not:
  • at any time owned (either solely or with some one else) residential property in Australia other than property owned solely as trustee or executor
  • previously received an exemption or concession under First Home Plus.

Note: If all purchasers are not 'eligible purchasers' you may still qualify for a concession under First Home Plus One.

HOMES:

To calculate the concession on a home between $500,000 and $600,000:
multiply the purchase price by 0.2249 and subtract $112,450
The result is the duty payable.

Vacant Land:

You do not have to pay duty on the purchase price of vacant land up to $300,000

To calculate the concession on land between $300,000 and $450,000:
multiply the purchase price by 0.1049 and subtract $31,470
The result is the duty payable.

The NSW Office of State Revenue has an interactive website (OSR Assist) which provides interactive support to help determine your liability to pay duty in NSW. (Will open in new window)

First Home Plus One

From 1 May 2007, First Home Plus One allows eligible purchasers to buy property with other parties and still receive a concession.
To qualify the eligible purchasers must buy at least 50 per cent of the property.
The value limits and purchasers eligibility criteria of First Home Plus apply.
The limits apply to the whole of the purchase price.

Note: If the first home buyer's spouse has previously owned a home or received a benefit under First Home Plus,
the first home buyer will not be entitled to First Home Plus One,
regardless of whether or not the spouse is also a purchaser.

South Australia:

First Home Bonus Grant

for first home buyers who have entered into a first home contract on or after 5 June 2008 and for owner builders who commence construction on or after 5 June 2008, subject to applicants meeting the eligibility criteria for the FHOG. The FHBG replaces the Stamp Duty First Home Concession Scheme.

The FHBG is an additional payment for first home buyers who qualify to receive a First Home Owner Grant where the market value of the property does not exceed $450,000.

How much is the First Home Bonus Grant?

A FHBG of $4000 is available for first home purchases with a market value of up to $400,000 and phases out for property with market values between $400,000 and $450,000 by $8 for every $100 in excess of $400,000.
(The FHBG is nil for properties $450,000 and over)

The FHBG is in addition to the $7000 First Home Owner Grant and the First Home Owners Boost of $7000 for existing or $14,000 for new properties.

The amount of the FHBG will be determined by the market value of the property which:

• in the case of a contract for the purchase of a home is the consideration for the purchase of a home, or, where that consideration is less than the market value, then the market value of the property.
• in the case of a comprehensive building contract is the sum of the consideration for the building contract and the market value of the property on which the home is to be built as at the time when the contract is made, or, where the consideration for the building contract is less than the actual costs, the sum of the actual costs to build the home and the market value of the property on which the home is to be built as at the time the building contract is made.
• in the case of an owner builder is the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.

Note: In the case of a farming property the market value of the property will be determined on the value of the home and curtilage area or that part of the land that is to constitute the site and curtilage of a home that is to be built on that site.

To determine the amount of the FHBG that you may be eligible for, use the First Home Bonus Calculator. (opens in new window)

How is the market value determined ?

The Commissioner may approve or adopt any method he considers reasonable for the purposes of determining:

• in the case of a contract for the purchase of the home, the market value of the home, which will in the first instance involve seeking valuation advice from the Valuer General.
• in the case of a comprehensive building contract, the actual costs to build the home and the market value of the property on which the home is to be built. In relation to the market value of the property on which the home is to be built, the Commissioner will in the first instance seek valuation advice from the Valuer General.
• in the case of an owner builder, the market value of the property, which will in the first instance involve seeking valuation advice from the Valuer General.

For links to official websites see left column

Disclaimer:

Although all care has been taken to provide accurate and clear information, we are not responsible for any mistakes.

If there is anything unclear, or if there are any mistakes, please let us know, so we can make the necessary changes.
Unclear, errors, comments