15 Sep 2009

First Home Owner Grant and First Home Owner Boost

You could receive up to $29,000!

The First Home Owner Grant (FHOG) scheme is a once off grant of $7,000 to first home buyers. The scheme was introduced on 1 July 2000 with no end date yet identified. The grant is not means-tested and is also not restricted by the purchase price or construction cost of the home.

On 14 October 2008, the Commonwealth Government announced a fiscal stimulus package, one element of which includes a temporary increase in the First Home Owner Grant scheme called the First Home Owner Boost (FHOB) that supplements the grant paid to first home buyers for established homes by an additional $7,000 and $14,000 for newly-constructed homes.

First home buyers will be eligible for the First Home Owner Boost (FHOB) on contracts to purchase or build a home entered into between 14 October 2008 and 30 June 2009.

Owner-builders are also eligible for the additional grant if they commence construction within this period. During this period the maximum grant is $14,000 for established homes and $21,000 for newly constructed homes.

Type of Transaction

Contract Date*

Completion Date

Additional Eligibility Criteria

Existing FHOG

New FHOB

Possible Total**

Form to Complete

Purchase of an established home

From 14 Oct 08 to 30 Jun  09

n/a

$7,000

$7,000

$14,000

FHOG Application Form

Purchase of a new home

From 14 Oct 08 to 30 Jun  09

n/a

Must be first sale of the home.

$7,000

$14,000

$21, 000

FHOG Application Form AND Addendum for FHOB

Purchase off-the-plan

From 14 Oct 08 to 30 Jun  09

Completion date on or before 31 Dec 2010.

$7,000

$14,000

$21,000

Application Form AND Addendum for FHOB

Contract to build a new home

From 14 Oct 08 to 30 Jun  09

Construction of the new home must commence within 26 weeks after the date of contract.

Certified copy of an original document which clearly shows the date of construction commencement date.

$7,000

$14,000

$21,000

FHOG Application Form AND Addendum for FHOB

Build a new home as an owner builder

Commence building on or after 14 Oct 08 to 30 Jun  09

Construction must be completed within 18 months of the construction commencing.

Customer cannot apply unless construction is completed.

$7,000

$14,000

$21,000

FHOG Application Form AND Addendum for FHOB

* The boost will not apply to a contract which replaces an earlier contract entered into before 14 October 2008 to purchase the same home or to build the same or substantially similar home.

**For VIC, SA and NSW: In addition to these amounts, first home buyers may also be eligible for a further bonus (subject to certain requirements). (This information is correct at the time of printing.)

Special BOOST conditions!

NSW

Effective from 11 November 2008 a NSW New Home Buyer Supplement of $3,000 will be added to the existing $7,000 grant for eligible First Home Owner Grant applicants building a new home or buying a newly constructed home. The $3,000 supplement will be available for 12 months (11 November 2008 to 10 November 2009 inclusive), at which time it will be reviewed in the context of the property market. This supplement is in addition to the $14,000 provided under the Commonwealth’s First Home Owner Boost scheme. This will give eligible First Home Owner Grant applicants building a new home or buying a newly constructed home a total of $24,000.

Effective from 1 July 2009 (subject to Federal Government approval) the First Home Owner Grant and NSW New Home Buyer Supplement will be capped and only be available for properties valued up to $750,000.

SA

As part of the SA State Budget 2008, the Treasurer announced the introduction of a First Home Bonus Grant (FHBG) 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. Who is eligible to receive the FHBG?

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.

A FHBG of $4,000 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 in addition to the $7,000 First Home Owner Grant.

QLD

Warning to first home buyers who may be contemplating replacing existing contracts to purchase or build a home in order to access the Commonwealth First Home Owner Boost.

The Queensland Office of State Revenue will be carefully examining all First Home Owner Grant applications in which the existing date of the contract has been altered or where the contract has been cancelled since the announcement of the Commonwealth boost scheme.

Under the Commonwealth scheme, the boost will be available for eligible applications relating to contracts entered into between 14 October 2008 and 30 June 2009. For owner builders, the boost will be available to owner builders who commence laying the foundation of their home between 14 October 2008 and 30 June 2009. Prescribed building periods will apply to new homes and newly constructed homes.

Eligible applications relating to contracts signed and dated prior to 14 October 2008 will be entitled only to the standard rate of the grant ($7,000) as they do not involve contracts entered into between 14 October 2008 and 30 June 2009.

An anti-avoidance provision will be implemented as part of the new scheme in respect of cancelled contracts dated prior to 14 October 2008.

VIC

First Home Owner Boost benefits: Established homes

First home buyers purchasing an established home may be eligible for the $7,000 boost in addition to the First Home Owner Grant ($7,000) and the First Home Bonus ($3,000*), bringing the total benefits to $17,000.

*Subject to certain requirements being met.

New homes

First home buyers building a new home or purchasing a newly constructed home may be eligible for the $14,000 boost, in addition to the First Home Owner Grant ($7,000), the First Home Bonus ($5,000*) and the First Home Owner Regional Bonus ($3,000*), bringing the total benefits to $29,000.

Where a newly constructed home is being purchased, it must be the first sale of that home. The home must also have never been previously occupied as a place of residence, including occupation by the builder, a tenant or other occupant.

Substantially renovated homes may be considered as a new home. Where a substantially renovated home is being purchased, it must be the first sale of the home since it was substantially renovated. The home, since being substantially renovated, must also have never been previously occupied as a place of residence including occupation by the builder, a tenant or other occupant.

Substantial renovations of a building are renovations where the entire building, or substantially all of the building, has been removed or replaced.

Note: Where the consideration is less than the total benefit available, the applicant will be entitled to an amount equal to the value of the consideration.

*Subject to certain requirements being met.

NT

The Territory Revenue Office (TRO) is responsible for the administration of the grant in the Northern Territory. A number of financial institutions help administer the grant as ‘Approved FHOG/FHOB Agents’ (most financial institutions) of the TRO.

WA

If your First Home Owner Grant application (July 2007) has already been lodged with an agent, you are required to complete and lodge the First Home Owner Boost addendum (October 2008) with the same agent for processing.

Fast track your home loan
Apply Online Book a Call Back
133 144

Why Choose Mortgage House?

Award Winning

Experienced

Approachable

Innovative