Making the decision to buy a home is a very exciting prospect for a first home owner. It's the stepping stone to one-day owning a house, and it's great that there are incentives in place by the Australian Government to help Aussies achieve their dreams.
On 1 July 2000, the Australian Government introduced the First Home Owners Grant in a bid to offset the effect of GST on home ownership. Eligible applicants are entitled to a base amount of $7,000 to assist in the purchase of their first home. Although the scheme operates nationally, Australian states and territories administer it according to its own legislation and the grant amount can vary between them.
The base grant amount remains the same at $7,000 across all states and territories; though different states and territories may offer additional bonuses.
For example, in NSW, successful applicants can receive up to $24,990 in first home ownership assistance. This includes the $7,000 First Home Owner Grant and a stamp duty exemption of up to $17,990 as part of the First Home Plus Scheme.
The base grant amount still remains $7,000 - however, extra incentives may be offered in certain states and territories.
For example, in Victoria, applicants are entitled to receive up to $13,000 for the construction of a new home (total value must not exceed $600,000) if their contract was submitted between 1 July 2010 and 30 June 2012. Victoria also offers a Regional Bonus of $6,500 for newly constructed or bought homes in a regional municipality in Victoria (total value must not exceed $600,000) if their contract was submitted between 1 July 2010 to 30 July 2012.
The scheme is not means tested, but there is a cap placed on the total property, value purchased in each state and territory:
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