Getting a first home owner grant in your state

Getting a first home owner grant in your state
FHOG is an incentive being offered by various state governments. Call 13 10 90 for us to provide you with a breakdown of the incentives in each state.

If you’re a first home buyer wanting to buy or build in the near future, you’ve probably been trying to work out whether you’re eligible for assistance from the government through a First Home Owners Grant (FHOG).

This is an incentive that, until recently, has been offered by the various state governments with the aim of offsetting the effects of GST on home ownership and encouraging first home buyers into the marketplace.

How does the first home owners grant work?

To be eligible for this grant, you needed to be:

18 years old or over

an Australian citizen or permanent resident

an individual, rather than a company or a trustee

a first-time recipient of the grant

a first-time residential property owner.

You were also required to move into your new home within a year and live there continuously for at least 6 months.

While this grant has always been fairly straightforward in terms of the amount (traditionally $7,000) and the eligibility requirements, recent changes by the states have now muddied the waters somewhat.

In an attempt to boost a flagging residential construction industry (which has been in decline across the country), the states have moved the goal posts for FHOG eligibility, increasing the amount of the grant but only for those buying new housing and phasing out grants for those buying established housing.

The various states and territories have followed each other’s lead one by one in this move, with the result that each state now offers its own version of the FHOG; all of which are firmly focused on injecting life into their local housing construction industries.

In light of these differences and because the traditional $7,000 grant is now all but defunct, this article will attempt to clarify the current situation with First Home Owners Grants by providing a breakdown of the incentives that are now available in each Australian state and territory.

FHOG by state

First Home Owner Grants exist to help first home buyers in different states and territories throughout Australia with varying grant sizes and stamp duty exceptions.

As long as you meet certain criteria (being over 18, have not owned a property before, intend to live in the home for at least six months after, the house must be brand new and not exceed a certain value etc.), then the state-based grants can give you a cash handout as big as $20,000 to help with a deposit:

NSW first home buyers

Up to $10,000, buying or building a new home that no-one has lived in before

VIC first home buyers

Up to $10,000 in Melbourne, $20,000 in regional Victoria, the first sale of a house, townhouse, apartment, unit or similar as a residential premises and the property must be less than five years old

QLD first home buyers

Up to $15,000, buying or building a brand new home and live there continuously for 6 months

ACT first home buyers

Up to $7,000, buying or building a new home, substantially renovated home or off-the-plan home

WA first home buyers

Up to $10,000 (eligibility differs upon location), buying or building a new home. A home that has been substantially renovated may be considered a new home.

SA first home buyers

Up to $15,000, buying or building a brand new home and live there continuously for 6 months

TAS first home buyers

Up to $20,000, available to eligible applicants who purchase or build a new home in Tasmania before 30 June 2022

NT first home buyers

Up to $10,000 (no limits on value), buy or build a new home

Grants of around $10,000 - $20,000 could be extremely helpful in helping you save for a deposit. What can be even more helpful is the stamp duty exceptions these grants may provide. Stamp duty can cost tens of thousands of dollars, but if your property is below a certain value, then you can have it reduced or waived entirely.

For information regarding eligibility for the FHOGs depends on your state and other criteria, which you should check on your relevant state Government's website.

Tags: buying your first home

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