First Home Owners Grant Overview
 To be eligible for the Federal Government’s First Home Owners Grant scheme you must be an Australian citizen or permanent resident at least 18 years old and you (and or your spouse / partner) must have not previously owned a home in Australia. If there are 2 applicants, at least one applicant needs to be an Australian citizen or permanent resident to qualify.
In NSW the grant is currently $14,000 ($21,000 for new unlived in properties).
You can apply for the First Home Owners Grant in the form of cash to add to your deposit and this is usually paid at the time of property settlement.
The property you buy must be an owner occupied property and legislation introduced in 2004 requires you live in the property for a period of at least 6 consecutive months commencing within the first 12 months after purchase. It is imperative that you seek advice from your solicitor if you intend to rent the property at some stage to see if you still qualify for the grant.
The First Home Owners Grant application can be submitted up to 12 months after the property purchase has settled.
A current First Home Owners Grant application form needs to be completed to apply and these can be obtained from your lender, accountant or solicitor.
Eligibility
To be eligible for the First Home Owners Grant (FHOG) scheme you must meet the following requirements:
Single Applicants
- Must be a natural person at least 18 years old
- Must be an Australian citizen or permanent resident
- Must not have received an earlier grant
- Must not have had relevant interest in residential property
- Must reside in the property for a continuous period of 6 months within 12 months after completion of the purchase
Joint Applicants
- One applicant must be a natural person at least 18 years old, please note, for both applicants income to be accessed for loan purposes you must both be 18 years old.
- At least one applicant needs to be an Australian citizen or permanent resident
- The applicant or applicants spouse must not have received an earlier grant
- The applicant or applicants spouse must not have had relevant interest in residential property
- Must reside in the property for a continuous period of 6 months within 12 months after completion of the purchase
Purchase Criteria
To be eligible you must purchase a home between 14th October 2008 and 30th June 2009.
- For established homes this means entering into a contract to buy or an exchange of contracts
- For newly-constructed homes this means entering into a contract to build a new home
Timings
To be eligible for the grant the following timings apply
Established homes
The application must be submitted within 12 months of the completion of the transaction.
New homes
For newly constructed home purchases
- Building must commence within 24 weeks of contract date (6 months)
- Building must be completed within 18 months of commencement of building
- Application must be lodged within 12 months of completion
- Total maximum allowed time 36 months
Stamp duty concessions
The First Home Buyers scheme in NSW gives a 100% stamp duty exemption for property purchases up to a cost price
of $500,000 ($300,000 if vacant land).
As with the First Home Owners Grant, eligible applicants must be an Australian citizen or permanent resident and
you (and your spouse / partner) must have not previously owned a home in Australia.
Frequently asked questions
 Q: When does this FHOB start?
A: It will operate between 14 October 2008 and 30 June 2009.
Q: What is the definition of new build? Is it something that has never been lived in before?
A: YES, the home can not have been occupied.
Q: What if I buy an off the plan home? Is this considered a newly constructed home?
A: YES, if the home has never been sold before nor previously occupied by any person.
Q: Do townhouses/units/apartments qualify?
A: YES. The home must be a fixed building suitable for use as a place of residence. This includes a house, flat, unit,
townhouse or manufactured homes. Houseboats and caravans are not eligible.
Q: Does this mean that the sale of unsold new stock, completed prior to 14 October, counts as new build?
A: YES
Q: How are first home owner builders treated? Can they access the grant now?
A: Building work must commence (not finish) between 14 October 2008 and 30 June 2009. Laying of foundation is
considered the commencement of building work. There will be time limits to build. If you apply through an agent
(bank etc) it will depend on your personal circumstances when you will receive the grant, you will need to check with
your legal adviser regarding the timings of this payment.
Q: What are the time limits for the construction of a new home?
A: The contract must be signed between 14 October 2008 and 30 June 2009. The building must commence
(laying of foundation) within 24 weeks of contract date. Building must be completed within 18 months of
commencement of building.
Q: What if the home is not constructed within 18 months? Is there an appeals process?
A: In most circumstances 18 months is a generous amount of time to complete construction. If it is not completed
within 18 months then the applicant would have to provide reasons why and ask for the Commissioner of State
Revenue to exercise his discretion to allow.
Q: What if I have owned vacant land? Will this mean I can’t receive the new FHOB?
A: NO, vacant land is not regarded as residential property for the first home owners grant (or FHOB).
Disclaimer: Whilst every effort has been made to ensure the accuracy of this information it is not to be relied upon in making a decision to purchase a property, a parcel of land or committing to a building contract. Prospective buyers or those wishing to build a new home are strongly advised to seek independent legal advice as to their eligibility for the First Home Buyers Grant or First Home Buyers Stamp Duty Exemption Scheme before proceeding with any property purchase or building contract.
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