First Time Home Buyers Grant
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.
What is the First Home Buyers Grant?
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.
Am I eligible for the First Home Buyers Grant?
- You or your spouse/partner must be an Australian citizen or permanent resident
- You or your spouse are buying or building your first home in Australia
- You or your spouse/partner have not previously owned a home in Australia
- You are required to live in the property for a period of at least six consecutive months within the first 12 months of purchasing
- The total property purchase price does not exceed your state or territory’s stipulated capped amount. For example, applicants who purchase or build a home where the total value exceeds $835,000 in NSW are not eligible.
Does it change according to State, or is it national?
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.
Do different rules apply to newly built and pre-existing homes?
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.
What is the total property purchase value cap?
The scheme is not means tested, but there is a cap placed on the total property, value purchased in each state and territory:
- ACT $750,000
- NSW $835,000
- NT $750,000
- QLD $750,000
- SA $575,000
- VIC $750,000
- WA $750,000 (or $1,000,000 for property north of the 26th parallel)
- TAS no limit
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