FHOG in Australia – What you need to know?

How much is your grant?

When GST was increased, the financial burden on the homebuyers was also increased which made the federal government introduce the FHOG scheme in the year 2000. The federal grant amount for each state is given as follows.

  1. Australian Capital Territory (ACT) – $7000
  2. New South Wales (NSW) – $10,000
  3. Northern Territory (NT) – $10,000
  4. Queensland Government (QLD) – $15,000
  5. South Australia (SA)- $15,000
  6. Tasmania (TAS)- $20,000
  7. Victoria (VIC) – $10,000
  8. Western Australia (WA)- $10,000

Depending on the state or territory where you buy your new home the eligibility criteria might also vary. Some of the states offer rebates for first time home buyers even on existing homes where a resale takes place. In a few states, you would get the grant only if you are buying a new home that has never been occupied before.

Are you eligible for the grant?

There are a few requirements that are common for all the states. Here are those eligibility requirements –

  • The grant is offered only for individual homeowners- so, you may not get anything if you buy your property on your company or trust ownership.
  • The minimum age of the applicant permitted is 18 years.
  • Either the applicant or his spouse should be an Australian citizen or should be a permanent resident in Australia.
  • Any of the applicants or a partner or spouse should not have owned a house in Australia before 1 July 2000.
  • Any of the applicants or a partner or spouse should not have owned a house in Australia after 1 July 2000 and lived in it for more than 6 months.
  • The applicant or spouse or partner should not have already earned this grant for some other property elsewhere in the country.
  • The applicant should occupy the purchased new home or the new construction continuously for 12 months or more as the ‘principal place of residence’. This means that you cannot get this grant for buy to let properties that you wish to rent out soon after you buy. If you vacate the house within the first 12 month period you may have to repay the grant.
  • The applicant can only obtain the grant for new construction, a residential property that meets the planning standards of the locality.

What is the procedure to obtain this grant?

Finding your dream home is easier than buying it. if budget is stopping you from purchasing your first home, make use of the FHOG plan. To apply for the grant look for an approved builder in your state or territory. You can easily download the application online. Visit the respective revenue department site of the state to get more information about the grant and the requisites for applying for it.