First Home Owners Grant
The First Home Owner Grant. Frequently asked questions about the First Home Owner grant.
- Who pays the First Home Owners Grant?
- Who distributes the First Home Owners Grant?
- What is a First home Owner Grant
- Why was First Home Owners Grant introduced?
- Am I eligible to apply for First Home Owners Grant?
- How can I get my First Home Owners Grant?
- What type of property is eligible for the First Home Owners Grant?
- Who is the grant paid to?
- How much is the First Home Owners Grant?
- When is the First Home Owners Grant payable?
- Who receives the First Home Owners Grant payment
What is the First Home Owner Grant?
The first home owner Grant is a tax free lump sum contribution to the first home buyer/s. The grant was enacted in the First Home Owner Act 2000 as amended.
Why was the First Home Owners Grant introduced?
The building industry is a major employer and wealth generator in Australia as well as the leading mortgage growth area.. The Grant was brought in to assist the home building Industry and the first home buyer to overcome the increase in cost in building a new home after the introduction of the new Goods and Services Tax from 1st July 2000.
On the basis that the first home buyer usually buys a modest home limited by his or her capacity to pay and needs, it is thought that it will mostly benefit the builders and developers operating in first buyer estates and homes. However, because the grant extends to established homes as well as newly built homes, it is thought to help those in established homes to sell and move up, thereby helping the whole spectrum of the building development and Real Estate Industry through the transition of the new tax.
Am I eligible to apply for the First Home Owners Grant?
You are eligible to apply if:
- You are a Natural Person. Companies and trusts cannot apply.
- You are buying or building your first property.
- You or a joint applicant are an Australian Citizen, or you have permanent resident status.
- You have not owned an interest in Australia in Land with a dwelling of any kind on it.
- You or your spouse or facto spouse of more than two years have not previously owned and interest in land with a dwelling on it in any previous relationship.
- All parties to the ownership of the property must be parties to the grant application.
- The Grant is now to be means tested, so your income and assets may mean you are no longer eligible.
How can I get my First Home Owners Grant?
Applications are only accepted on the application forms obtainable from the Office of State Revenue in each State, the Office's website, or approved agents.
What type of Property is eligible for the First Home Owners Grant?
The property can be a new home, an established home or a to be constructed home that you build yourself as an owner builder, of have built by a licensed builder.
The home can be any sort of self contained, fixed dwelling that meets local council building codes and planning standards, and can include, apartments, units, flats, attached or detached homes and cottages any where in Australia.
You must intend to live in it yourself/ selves. It cannot be an investment property.
Who Pays the First Home Owners Grant?
The grant is paid by the Commonwealth of Australia.
Who distributes the First Home Owners Grant?
Each State Government administers the grant on behalf of the Commonwealth.
For more information, please contact your local State or Territorial Revenue
Office.
How much is the First Home Owners Grant?
The grant was Au$7,000.00.[seven thousand dollars.]
It has been temporarily increased to:
- $14,000 for established homes, and
- $21,000 for new homes construction.
- However, If you buy a home for less than $7000, then the grant will be what you paid for the home or construction. If you were fortunate enough to buy a home for $5,500, then the grant would be $5,500.
When is the grant payable?
If you, the applicants meet the eligibility criteria, and if the transaction meets the governments criteria, The grant is paid:
- When purchasing a new or established home, when the title is registered in the applicant/s name/s.
- When building a new home, when the home is ready for occupation.
It is a condition that all applicants live in the home as their principle place of residence within one year of either of the events above.
Who is the Grant paid to?
The grant will be paid to the applicants, or whoever the applicant/s nominate,
such as a bank, other credit provider or a builder.