Saving for a deposit is undoubtedly hard work, especially when Australian house prices are at an all-time high. However, it’s not impossible!
If you are thinking about purchasing your first home, you might be eligible for some government funding schemes which can help ease your financial burden.
Depending on your home state, you might be eligible for a one-off payment ranging between $10,000 and $20,000 under the First Home Owner Grant (FHOG).
If that sounds exciting to you, read on to find out more!
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What is the First Home Owner Grant (FHOG)?
Introduced on 1 July 2000, the First Home Owner Grant is a payment that can help first homeowners to save on the costs of buying their first home.
Funded by different states and territories, the First Home Owner Grant (FHOG) scheme might vary in terms of eligibility rules and values. It’s always best to check directly with the revenue office from your state for full details, but here is an overview of what you could get!
First Home Owner Grant NSW
Under the NSW Scheme, a $10,000 FHOG is available when you buy or build your first new home.
This can be a house, townhouse, apartment, unit or similar that is newly built or off-the-plan property that values below $600,000.
If you’re planning to build your own home, you may still be eligible for the NSW FHOG if the combined value of your land and the house you build is less than $750,000.
To be eligible for the grant, you must be:
- Buying your first home in Australia
- A first home buyer as a person, not a company or trust
- An Australian citizen or a permanent resident of Australia
- At least 18 years old.
- Occupying your first home as the main place of residence within 12 months of the construction or purchase of your home
You might also be eligible for the First Home Buyer Assistance Scheme (FHBAS), under which you can get a full or partial exemption on stamp duty (transfer duty) if your new home value is no more than $1,000,000.
For more information on FHOG and FHBAS click here.
First Home Owner Grant ACT
From 1 July 2019, the ACT government has replaced the First Home Owner Grant with the new Home Buyer Concession Scheme.
Under the new scheme, eligible buyers will pay no or reduced stamp duty (which could add up to $35,910) and have more freedom to buy the right home.
To be eligible for this scheme, you must be:
- At least 18 years old.
- One buyer must live in the house for at least 1 year
- You or the co-purchaser must not have previously owned a home in the last 2 years
Plus, to be eligible for the scheme, the total gross income of all buyers not exceed the below threshold.
First Home Owner Grant VIC
Similarly to New South Wales, Victorian first-time buyers may be eligible for a $10,000 grant when purchasing or building a new home worth less than $750,000.
Under duty concessions, you, as a Victorian first home buyer, will also get
- Duty exemption if the home value is less than $600,000
- Duty concession if the home value is from $600,001 to $750,000
However, if you are an off-the-plan buyer, a pensioner, or a farmer, you might also receive additional benefits.
Click here to check all eligibility requirements.
First Home Owners Grant QLD
When buying or building your first home in Queensland valued at less than $750,000, you might be eligible for a grant of up to $30,000.*
This grant can be applied for all types of homes, already built or off the plan, so you can have various options when it comes to buying your first home.
To be eligible for the grant:
- You must be at least 18 years old and an Australian citizen / permanent resident (or applying with someone who is)
- You must not own property in Australia that you previously lived in.
- Within 12 months after the finalised sale, you must make the new property your primary residence and stay there for a total of six months.
In addition, you are also exempt from paying stamp duty if your home costs less than $500,000 or if the value of your vacant land is less than $400,000.
First Home Owner Grant NT
In the Northern Territory, you can apply for a $10,000 First Home Owner Grant if you’re buying or building a new home. Additionally, you could get up to $2,000 through the Household Goods Grant Program and up to $10,000 for house renovations.
Similar to other states, there may be a few requirements for you to qualify for this homeowners grant in the Northern Territory, including being at least 18 years old, not having owned property in the past, and applying for FHOG for the first time in Australia.
For more information, click here
First Home Owner Grant SA
You may be eligible as a first home buyer for a grant of up to $15,000 on the purchase or construction of a new residential home in South Australia.
However, the property’s market value needs to be $575,000 or less, and it must not have been previously occupied or sold as a place of residence or includes a substantially renovated home.
First Home Owner Grant WA
Western Australian citizens might be eligible for a grant of $10,000 when buying or building their first home. However, the cap on total value depends on where the home is located:
- South of the 26th parallel – the value of land and buildings is up to $750,000
- North of the 26th parallel – the value of land and buildings is up to $1,000,000.
Stamp duty exemptions and concessions are also available in Western Australia if the new home is valued at less than $530,000 and vacant land is less than $400,000.
For more information, click here.
First Home Owner Grant TAS
First home buyers building a new residence or purchasing a newly built one may be eligible for a grant of up to $30,000.
If your property’s value is $500,000 or less in Tasmania, you can also receive a 50% discount on stamp duty.
More information can be found here.
Buying your first home is always an exciting journey!
We understand that buying your first home is one of the most significant decisions of your life, and it can be daunting sometimes.
But when the time comes, don’t feel like you have to do everything on your own. Call us on (02) 9099 3412 or enquire below, so our team can help you navigate your first home-buying journey!
*From Monday, 20 November 2023, the Palaszczuk Government is doubling the First Home Owner Grant, taking the total to $30,000 for eligible first home buyers.