The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 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.
First home owners may qualify for the grant and/or the first home owner rate of duty if they are either purchasing an established home or if they are building or purchasing a new home. The grant has:
- geographical caps on the total value of the home
- residence requirements
- eligibility criteria for applicants
The grant (FHOG) is a one-off grant payable to first home owners that satisfy all the eligibility criteria.
Eligible First Home Owner
To be eligible for the grant and/or first home owner rate of duty, applicants must satisfy the following criteria:
- An applicant must be a natural person (i.e. not a company) and be 18 years or over at the time of making application. If you are under 18, you may be able to apply for an exemption from the age requirement.
- At least one applicant must be an Australian citizen or a permanent resident at the time of making application.
- Applicants and/or their spouses or de facto partners cannot have:
- previously received the grant or first home owner rate of duty from any jurisdiction in Australia
- owned residential property anywhere in Australia before 1 July 2000
- owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence before 1 July 2004
- owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence for a continuous period of at least six months that began on or after 1 July 2004.
- Applicants must occupy the home as their principal place of residence for a continuous period of at least six months commencing within 12 months of settlement if purchasing a home, or within 12 months from the date of completion if building a home.
- Applicants must hold a relevant interest (ownership) in the land on which the home is situated and must own the home in their own capacity. If they own the home as a trustee, it must be held on trust for a person with a legal disability.
First Home Owner Grant
The grant is $10,000 or the consideration paid to buy or build the house if less than that amount.
- For eligible transactions entered into between 1 January and 30 June 2017, an additional $5,000 boost payment may be available.
- For eligible transactions entered into between 1 July 2000 and 24 September 2013, the grant was $7,000 or the consideration paid if less than that amount.
The grant is no longer available for the purchase of established homes.
Application First Home Owner
All applicants must complete form F-FHOG1
Applications can be submitted through a FHOG approved agent or directly to the Office of State Revenue.
If you are applying for a loan from a financial institution (i.e. bank or credit union) to purchase or build a home and your lender is a FHOG approved agent, they can process your application.
This may also result in you receiving your grant and approval for the first home owner rate of duty earlier than if you were to apply directly through the Office of State Revenue.
Contact your lender to find out if they are an approved agent. You will be required to produce supporting documentation with your application as required by your lender.
All applications undergo a rigorous review. During which applicants are checked for former home ownership in Western Australia and interstate. Other checks into spouse/de facto partner status, council records, title details and finance particulars are carried out on a routine basis.
Talk to your Conveyancer and follow the links above. This has been a brief outline of the First Home Owner Grant and does not contain all information that you may need to know.