|
Options
|
Grants and Rebates
The First Home Owner Grant (FHOG) and Boost (FHOB) are grants available to assist property buyers, who meet certain criteria, to purchase their first home.
New grant values and cut-off dates (pdf)
First Home Owner Grant
To offset the impact of the introduction of the goods and services tax (GST), the Commonwealth, States and Territories agreed to implement arrangements to assist first home buyers through the establishment of the First Home Owner Grant (FHOG) scheme.
The FHOG scheme commenced on 1 July 2000. Each State and Territory Revenue Office is responsible for administration of the grant in their respective jurisdiction.
The broad principles of the grant are:
- Eligible applicants will be entitled to a one-off payment of up to $7 000 (however, see First Home Owner Grant Boost information below).
- Eligible applicants must be natural persons and at least 18 years of age, who are Australian citizens or permanent residents, who are buying or building their first home in Australia.
- To qualify for assistance, neither the applicant nor their spouse (or partner) can have owned a home prior to 1 July 2000, either jointly, separately or with some other person, or purchased a home on or after 1 July 2000 and occupied that home.
- Entering into a building contract or commencement of building, in the case of owner-builders, must have occurred on or after 1 July 2000.
- An eligible home will be located in Australia and will be a new or established house, home unit, flat or other type of self contained fixed dwelling that meets local planning standards.
- An eligible home must be intended to be a principal place of residence and occupied for a continuous period of 6 months commencing within 12 months of completion of the transaction (settlement or completion of construction).
- Assistance is not means tested.
- Joint applicants will be restricted to a single application for a single property and only one grant will be made.
First Home Owner Grant Boost
The Australian Government has announced a First Home Owner Boost. Effective from 14 October 2008:
- first home owners who purchase established homes will receive double the existing grant, taking the grant to $14,000; and
- first home buyers who build a new home or purchase a newly constructed home will receive triple the existing grant, taking their grant to $21,000.
Applications for the FHOG for established homes will automatically be considered applications for the Boost. In addition, the SRO has created an addendum to the application form for newly constructed homes to apply for the Boost.
If you wish to purchase a property in another State or Territory, the application and payment process may vary from the process in Tasmania.
Information relating to other States or Territories.
2009-10 Commonwealth budget
The First Home Owners Boost will be extended for six months until the end of December 2009. The eligibility criteria and application process have not changed.
- Between 1 July and 30 September, eligible first home buyers will receive $7 000 plus either $7 000 to purchase an established home or $14 000 to purchase or build a new home.
- Between 1 October and 31 December, eligible first home buyers will receive $7 000 plus either $3 500 to purchase an established home or $7 000 to purchase or build a new home.
- From January 1 2010, the First Home Owner Boost will cease but eligible first home buyers will continue to receive the First Home Owner Grant of $7 000 regardless of whether they are buying an established home or buying or building a new home.
State Taxes
Duty
Duty (previously known as “stamp duty”) is a form of taxation charged by the State Government, under the Duties Act 2001, when someone acquires an interest in property, usually by buying a property. Normally, duty must be paid by the purchaser/transferee within three months of the dutiable transaction. A duty concession may be available to first home buyers.
Land tax
When you buy or acquire a property, the person(s) selling or transferring the property must pay any unpaid land tax and they will need to obtain an Estimate of Liability at Settlement Date (EOLSD) to determine how much, if any, needs to be paid. More about land tax....
|
|
|
