A simple guide to the First Home Owner Grant


Australian state and territory governments actively encourage new home building and purchases with their First Home Owner Grant (FHOG). If you are looking to buy a property, now could be a good time to capitalise on FHOG. 

What are the basic requirements of the First Home Owner Grant? 

Some requirements are common across all the states and territories of Australia, such as:

  • At least one of the applicants must be a permanent resident or a citizen of Australia
  • The home should not be an investment property   
  • All applicants must be 18 years or over
  • Each applicant is an individual or a natural person, and not identified as a company or trust
  • It should be the first time that each applicant and/or their spouse or de facto partner would receive the grant from any Australian state or territory, and should not have held any relevant interest nor occupied a residential property that they acquired on or after the 1st of July 2000.

Am I eligible for the First Home Owner Grant?

Here is a simple breakdown of what you need to know about eligibility and applications for each state and territory.  

New South Wales 

As of the 1st of July 2017, property values of new home purchases are capped at $600,000 and owner-builder properties are capped at $750,000 for First Home Buyer Grant. The grant amount is capped at $10,000 for eligible transactions dated 1 January 2016 or later.

It is a requirement in NSW that you should have resided for a continuous period of 6 months in your new home as your primary residence within 12 months of completion of construction or settlement in the case of purchase before you are eligible to apply for FHOG. However, if all applicants are on the NSW electoral roll and if one of the applicants is part of the Australian Defence Force, applicants are exempt from the 6 month residence requirement.

Queensland

The eligibility criteria in the sunshine state require that the home that you buy should be valued at $750,000 or less (including land). This grant is also available for established homes that have undergone substantial renovations, and have not been occupied or sold as a place of residence since renovation. The value of the grant ranges from $15,000 to $20,000 depending on your contract date.  

As part of the residence requirements, you are required to live for a continuous period of 6 months in the first one year period of the completed transaction. Further information about applying for FHOG in Queensland could be found at the Queensland Government’s website.

Victoria

The upper limit of First Home Owner Grant for the purchase or building of a new home in Victoria is set at $10,000 from the 1st of July 2013. But if the home is in regional Victoria you could qualify for $20,000. The property should be a new one, listed for sale for the first time, and the property value should be $750,000 or less. 

At least one of the applicants should reside in the property for a continuous period of 12 months as their primary place of residence within 12 months of completion of construction or settlement in the case of purchase. Further information on applying for FHOG in Victoria can be found at the Victoria State Revenue Office website

Australian Capital Territory 

The first home owner grant cap for residents of Australian Capital Territory as of the 1st of January 2017 has been fixed at $7,000. This payment will end for all new home transactions entered into after the 30th of June, 2019. 

The total value of the property should be $750,000 or less. Further, at least one of the applicants should reside in the property for a continuous period of 6 months as their primary place of residence within 12 months of completion of construction or settlement in the case of purchase. 

You must complete the First Home Owner Grant Application SmartForm within one year of completing your purchase transaction. The ACT Revenue Office provides further details of other eligibility criteria associated with FHOG. 

South Australia 

The First Home Owner Grant in South Australia is capped at $15,000 for transactions executed after the 15th of October 2012, while the cap is substantially less at $7,000 for transactions between 1 July 2002 and 14 October 2012. The market value of the purchased property is capped at $575,000 for transactions executed on or after 17 September 2010.

At least one of the applicants should reside in the property for a continuous period of 6 months as their primary place of residence within 12 months of completion of construction or settlement in the case of purchase. Further information on applying for FHOG in SA could be found at the Revenue SA website

Tasmania 

The First Home Owner Grant in Tasmania is capped at $20,000 for transactions executed up to and including 30 June 2019, while the cap would be reduced to $10,000 for transactions entered into on or after 1 July 2019. The construction of new homes should be completed within 24 months of entering into the contract or laying the foundation for the property. 

At least one of the applicants should reside in the property for a continuous period of 6 months as their primary place of residence within 12 months of completion of construction or settlement in the case of purchase. Further details on applying for FHOG in Tasmania could be found at the Tasmanian Government website.

Northern Territory 

The First Home Owner Grant in Northern Territory is capped liberally at $26,000, provided the house bought is a brand new one. The 6 month residential requirement applies for at least one of the applicants, within the first 12 months of completion date of the eligible transaction. More information and the application can be found on the Northern Territory government website in the Northern Territory First Home Buyer Grant Guide

Western Australia 

In Western Australia, the First Home Owner Grant is capped at $10,000. Based on the property location, the total value of the property purchased is capped at $750,000 if it is located south of the 26th parallel, while the cap is $1,000,000 for properties located north of the 26th parallel.
At least one of the applicants should reside in the property for a continuous period of 6 months as their primary place of residence within 12 months of completion of construction or settlement in the case of purchase. Further information on applying for FHOG in SA could be found at the First Home Owner Fact Sheet

If you’re looking to buy a new home, make the right call and get a Loan Market broker working for you. Call us on 13 56 26 or explore our website for more advice.