First Home Owner Grant (FHOG)

/in /by

NSW  – Effective from 1 January 2016 till 30 June 2017

Queensland  – Effective from 1 July 2016 till 30 June 2017

 

The new grant of $10,000 (NSW) and $20,000 (QLD) is available to first home owners who will be buying or building a new home.

The FHOG applies to new property bought or built at a value under $750,000 in Qld. In N.S.W. the amount and is capped at $650,000. (N.S.W. Review the Capped amount annually)

 

  • contracts to buy a new home (including off the plan) effective dates above per state
  • contracts to build a new home, effective dates above per state

 

A new home is a home that; has not been previously occupied as a place of residence or has not been previously sold as a place of residence or is a substantially renovated home (in certain circumstances).

 

There are some eligibility criteria and they are;

  • You buy vacant land after 1 January 2007
  • Not a company or a person acting as a trustee
  • An Australian citizen or a permanent resident (or a joint applicant with someone who is an Australian citizen or permanent resident)
  • Buying or building a home worth less than $750,000 (Qld) $650,000 (NSW)
  • You are at least 18 years of age
  • You have never held an interest in residential land (in any state of Australia)
  • The home to be constructed on the vacant land will be your first home
  • There will only be one home constructed on the vacant land
  • There was no building or part of a building on the land when you bought it
  • You have not received a first home vacant land transfer duty concession before you build and occupy your first home as your principal place of residence within two years after the land is transferred to you
  • You do not dispose of the land before, or within one year after you start living in the constructed residence

 

Each person who owns a part of the home must be an applicant.  This includes anyone who

is or will be on the title of the property.  If there is a spouse who will not own any part of the home, he or she must be included on the application as a non-applicant spouse.  All applications must meet the eligibility criteria.

 

Your customer and their spouse have;

  • never been paid the first home owners grant
  • Before 1 July 2000, not owned residential property in Australia
  • From 1 July 2000, not lived in residential property (in Australia) they have owned.

 

 

 

 

Keeping the concession

 

You might not lose the concession if you;

  • Lease part or all of the home to the vendor or an existing tenant before you occupy it, as long as they move out when their current lease expires or within six months of the transfer date, whichever happens first or
  • Are unable to occupy – or dispose of – the home because of an intervening event such as a natural disaster, incapacity or death. If this happens, customers must apply to the Office of State Revenue for a determination.
  • You will not lose the concession if you occupy the home, then leave it vacant, but do not dispose of the property until the one year residency requirement has been satisfied.
  • You will move into the home within one year of the property being registered in your name live in the home for six months continuously as your principal place of residence.

 

Exceptions

The Office of State Revenue may approve the grant in special circumstances if your customers;

 

  • are under 18 years of age
  • Move into the home after one year of becoming the registered owner
  • Live in the home for less than six months

 

You may also get the grant if you have entered into a/an;

 

  • Oral contract
  • Instalment arrangement
  • Rental purchase agreement

 

Check with the Office of State Revenue for further details.

Applying for the Grant

Anyone who will own any part of the home must be included on the application.  You only need to lodge one application for the home, regardless of the number of applicants.     (Only one grant is payable per application.) The application must be;

 

  • signed by all applicants
  • Witnessed
  • Completed (including the age restriction/disqualifying arrangements/residency requirements addendum)
  • Download a Supporting Documentation Checklist from the Office of State Revenue.

 

https://firsthomeowners.initiatives.qld.gov.au/

(information is true & correct at time of writing this blog – 30/05/2017)