First Home Owner Grant; What is it and who’s eligible?

First Home Owner Grant; What is it and who’s eligible?

Faced with some of the highest property prices in the country, and even the world, for many first home buyers, the prospect of purchasing a home is even more challenging than it is exciting. Unprecedented buyer demand, record low interest rates and incredibly low stock levels have resulted in house...

Faced with some of the highest property prices in the country, and even the world, for many first home buyers, the prospect of purchasing a home is even more challenging than it is exciting. Unprecedented buyer demand, record low interest rates and incredibly low stock levels have resulted in house prices soaring, ultimately making entering the property market a difficult endeavour.

Fortunately, there are various state government grants, incentives and schemes available to eligible first home buyers to help make a seemingly impossible feat possible.

New South Wales

The First Home Owner Grant

The First Home Owner Grant in New South Wales was implemented in 2000. Under this scheme, a one-off payment of $10,000 is paid to eligible first home buyers to assist with the cost of buying a new home.

To be eligible for this grant:

  • You must be buying or building a brand new (or substantially renovated) home. You can choose to buy off the plan or build yourself.
  • If buying a newly constructed or substantially renovated home the value must not exceed $600,000. If buying a home that has been substantially renovated, most of the home must have been removed or replaced and the home must not have been lived in prior to, during or after the renovations. 
  • If you are buying land, the combined value of your building and land must not exceed $750,000.
  • You must not have previously owned a home before 1 July 2000 or received a First Home Owner Grant. 
  • You must occupy the premises for at least 6 consecutive months, commencing within 12 months of the completed transaction. 

The First Home Buyer Assistance Scheme

The New South Wales government has also implemented a First Home Buyer Assistance Scheme to offset the cost of transfer duty or reduce the fee significantly. You can find more information on this scheme here

Australian Capital Territory

From July 2019 the First Home Owner Grant was replaced with a Home Buyer Concession Scheme where first home buyers within the ACT currently avoid paying stamp duty or have the amount reduced significantly. This concession applies to all new and established homes within the ACT including vacant residential land with the concession amount capped at $35,910. 

To be eligible for this exemption:

  • Your household income must be below $160,000 or for families it can increase to $176,650 depending on the number of children you have.
  • At least one buyer must live in the home for 12 months, commencing within 12months from the completed transaction.
  • You or your partner must not have owned a property within the last two years 

Queensland

The First Home Owners’ Grant in Queensland was first introduced in 2000 and the current grant is valued at $15,000 for contracts dated from 1 July 2018. 

To be eligible for this grant:

  • You must be buying or building a brand new (or substantially renovated) home. You can choose to buy off the plan or build yourself. 
  • The value of the property, including the land, must be less than $750,000
  • You must intend to live in the home continuously for 6 months within 12 months from the completed transaction. 
  • You or your spouse must not have previously owned a property in Australia that you lived in. 

Victoria

The First Home Owner Grant

The First Home Owner Grant is available when you buy or build a brand new home and is currently valued at $10,000. A new home can be a home that is substantially renovated or a home that has been built to replace a demolished property. 

To be eligible for this grant:

  • The home must be valued at $750,000 or less and has not been previously sold or occupied. 
  • You must occupy the home continuously for 12 months commencing within 12 months from the completed transaction. 
  • You have not received a first homeowner grant within Australia previously or owned residential property before 1 July 2000. You may still be eligible if you purchased a property from 1 July 2000 but did not occupy it.

This grant can be paid in addition to other exemptions and concessions implemented by the Victorian Government which can be viewed here

Given these criterion’s likely rule out a significant portion of first home buyers, it’s good to know there are other schemes available. 

The First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme is a Federal Government initiative run by the National Housing Finance and Investment Corporation (NHFIC). Aimed at shaving years off the time it takes first home buyers to save a deposit, the initiative allows first-home buyers to secure a home loan with as little as a five per cent deposit without incurring the additional cost of lender’s mortgage insurance. Under this scheme, this fee is waived as the federal government essentially acts as a guarantor on the loan.

With only 10,000 places released by NHFIC each year, taking advantage of this scheme is quite competitive. First home buyers can apply for the scheme through their lender or mortgage broker. You can read more here

The First Home Super Saver Scheme

Another  Federal Government initiative, the First Home Super Saver Scheme, allows prospective first-home buyers to make additional superannuation contributions that are later accessible for a first home deposit. The scheme allows individuals to save $30,000 via voluntary concessional (before tax) and voluntary non-concessional (after tax) contributions. 

In terms of eligibility, first home buyers can take advantage of this scheme provided they either live in the premises or intend to or intend to live in the property for at least six months within the first 12 months of owning it.

The generally lower tax of a super account makes this scheme appealing; however, it does require forward thinking so that the money is saved prior to first home buyers finding their dream home. You can read more about this scheme here

For more information on other schemes, incentives and concessions available within your State follow this link or contact your nearest Stone office for advice.

 Individual state links. 

ACT: https://www.revenue.act.gov.au/im-buying-a-new-home 

NSW: www.revenue.nsw.gov.au/grants-schemes/first-home-buyer 

QLD: https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions 

VIC: www.sro.vic.gov.au/first-home-owner