First Home Owner Grant

In your research, you’ve probably heard of the First Home Owner Grant, which was granted to 11,381 people in Victoria alone in the 2022-2023 financial year.¹The Age – First home owner grant faces the axe in Victoria But how does it work, and how can you get it?  

How does the First Home Owner Grant work? 

The First Home Owner Grant (FHOG) is a one-off grant for people buying their first home in Australia. It was brought in on 1 July 2000 to help offset the cost of the GST involved with buying a home. 

How much can I get with the First Home Owner Grant? 

The FHOG is a nationwide scheme, but each state or territory does have its own rules around eligibility, how much you can get, and other benefits. Let’s break it down by state. 

• In NSW, the grant provides $10,000 towards a newly built home worth up to $600,000 or towards a new build on vacant land worth up to $750,000.
• In Victoria, the grant provides $10,000 towards new homes up to $750,000.
• In Queensland, the grant provides $30,000 towards buying or building a new home worth up to $750,000.
• In South Australia, the grant provides $15,000 towards buying or building a new home worth up to $650,000.
• In Tasmania, the grant provides up to $30,000 towards buying or building a new home that must be complete within 24 months of the transaction start date.
• In Western Australia, the grant provides $10,000 towards buying or building a new home worth up to $750,000 south of the 26th parallel (this includes all Perth metropolitan areas), or worth up to $1,000,000 for homes north of the 26th parallel.
• In the Northern Territory, the grant provides $10,000 towards buying or building a new home. The price of the home doesn’t impact your eligibility for the grant. 

Am I eligible for the First Home Owner Grant? 

Wondering if you’re eligible for the First Home Owner Grant? Each state and territory have its own specific criteria, but overall you will need to: 

• Be an Australian citizen or permanent resident
• Be aged 18 or over
• Be buying or building your first home in Australia
• Live in the property for at least six months (the FHOG is not available for investment properties)
• Buy the property as an individual, not a company or trust. 

If you already own an investment property and you have never lived in it, you are potentially still eligible for the First Home Owner Grant, but it might depend on your state. You’ll also need supporting documents to prove you never lived there. 

Can I still get the First Home Owner Grant if my partner owns a home? 

Technically, you are not eligible for the FHOG if you or your spouse has: 

• Previously received a FHOG in Australia
• Owned a residential property in Australia before 1 July 2000
• Lived in a home that you owned (or part-owned) on or after 1 July 2000 for at least 6 months. 

If you or your spouse bought a property after 1 July 2000 but you never lived there, you could still be eligible. If you’re buying a property and intend to live in it with a de facto partner or spouse who has already received the FHOG in the past, your application will be denied, even if you’ll have sole ownership of the property. 

How do I apply for the First Home Owner Grant? 

Most of the time, the bank or mortgage provider will lodge your First Home Owner Grant application for you. Otherwise, you can lodge it yourself online after you’ve taken possession of the home, directly with your state or territory revenue office.  

Bear in mind though, there are some applications that differ from state to state so it’s best to check the specific requirements for where you live.  

If you’re lodging your application yourself, you need to lodge it within 12 months of your settlement date. You’ll need to fill in a form and provide documents showing your home purchase transaction as well as copies of one document from each of the below categories:

Category 1: Primary identity document and evidence of citizenship or permanent residency. These can include your birth certificate, passport, citizenship certificate, or your permanent residence visa. 

Category 2: Evidence of link between identity and person. These can include your Australian driver’s licence, passport, working with children check card, firearms licence, or a Proof of Age card. 

Category 3: Evidence that you live in Australia. This can be your current Medicare card, motor vehicle registration notice, Centrelink or Department of Veterans Affairs card. 

If your lender is not lodging the application for you, you can lodge your application through the following state and territory websites: 

• NSW
• Victoria
• Queensland
• South Australia
• Tasmania
• Western Australia
• Northern Territory 

What are the benefits and drawbacks of the FHOG? 

While free money is always nice, the First Hhome Owner Grant does come with certain conditions that might make it less appealing. The main condition is that it only applies to new homes up to a certain value. 

Depending on where you live, the price caps might be well below the median house price. New builds also tend to be in city fringe areas, which can be less desirable and convenient locations to live in. 

Are there any other schemes to help first home buyers? 

There are some other schemes available to help first home buyers, and the good news is that you can combine the First Home Owner Grant with any other program you’re eligible for. 

Other nationwide grants and schemes include: 

• First Home Guarantee 
  Housing Australia guarantees part of the loan (up to 15% of the value of the property), allowing eligible people to buy a home with a 5% deposit without paying lenders mortgage insurance.
• First Home Super Saver Scheme 
  Allows people to make voluntary (pre and post-tax) contributions to their super fund. Those funds (and associated earnings) can then be withdrawn to put towards buying a first home.
• Family Home Guarantee 
  Housing Australia guarantees part of the loan (up to 18% of the value of the property), allowing eligible single parents or legal guardians to buy a home with as little as a 2% deposit without paying lenders mortgage insurance.

Each state and territory may also have their own schemes and benefits available. 

Where can I find and compare Home Loans? 

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