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12thJun2019

What is the First Home Buyer Grant?

  • Article by: Sally Wood

The First Home Owner Grant was introduced in 2000 to encourage and assist homeownership across Australia by offsetting the Goods and Services Tax (GST).

It is not means tested so eligibility is not determined by financial circumstances. In general, you will be eligible if you:

  • Are a permanent resident or citizen of Australia
  • Are over 18 years old
  • Apply for the grant within 12 months of settlement
  • Will live in the property for the minimum time set by your state (as such, the grant is not for investment properties)

 

Although it is a national grant, the First Home Owner Grant is funded and administered at a state-level. This means that the grant amount varies from state to state, as per the table below.

 

State

Grant Amount

Maximum Property Price

ACT

$7,000

$750,000

NSW

$10,000

$600,000 (for purchased property)

$750,000 (for constructed property

NT

$26,000

No limit

QLD

$15,000

$750,000

SA

$15,000

$575,000

TAS

$20,000

Not specified

VIC

$10,000 (for metropolitan areas)
$20,000 (for regional areas)

$750,000

WA

$10,000

$750,000 (properties south of 26th parallel of latitude)

$1,000,000 (properties north of 26th parallel of latitude)

 

If you’re thinking about applying for the First Home Owner Grant, you should keep in mind that the Grant is not technically included within your deposit. This is because the Grant is not made available to you at the beginning of your property purchase journey. In addition, the Grant is not paid directly to you—it is made available to your solicitor as and when required. For instance, if you have purchased a house and land package, the Grant will usually be made available to your solicitor once the concrete has poured. If you have purchased a fully contrasted house, the Grant will usually be made available to your solicitor at settlement.


 

 
Published: 12/06/2019
Author: Sally Wood
Company: homeshelf.com.au
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