The First Home Owners Grant
The First Home Owners Grant AKA FHOG is a nationally based scheme introduced in 2000 to assist first home buyers in alleviating the additional costs that the GST added when buying property.
It should be noted that the FHOG is just available for the purchase or construction of new approved dwellings and not existing ones. It is a national scheme, however, the grants are administered by the states and territories and as a result there are different conditions that apply from one state or territory to another.
How much can I get? 
The grant thresholds vary depending on which state or territory you’re buying your home in and can be subject to various conditions. The amounts applicable for eligible transactions as at February 2017 are as follows:
- Australian Capital Territory – $7,000
- New South Wales – $10,000
- Northern Territory – $26,000
- Queensland – $20,000
- South Australia – $15,000
- Tasmania – $20,000 until 1 July 2017, when it will revert to $10,000
- Victoria – $10,000
- Western Australia – $10,000, plus a $5,000 booster payment for purchases from 1 January to 31 December 2017
On top of the FHOG, states and territories can offer stamp duty concessions or even exemptions.
Who is eligible for the grant?
To be eligible to claim the FHOG – applicants you must be at least 18 years of age and be a physical person and not a related entity like a trust or trading company. They must also be an Australian citizen or permanent resident. The FHOG is only available to people buying or building their first residential property and eligibility may differ state by state.
Who is not eligible for FHOG?
If you or your partner have owned a residential property before 1 July 2000, you will not be eligible for FHOG.
You are only eligible for the FHOG once – for example – you can’t receive the grant in Queensland and then apply for a grant in Tasmania.
What kind of property is acceptable?
The First Home Owner Grant is available to eligible people buying a new home, unit, townhouse or a property that is being sold as a residence for first time ownership, some houses that have been substantially renovated can also qualify. If you are buying an established home then you are not eligible.
The value is capped at $750,000 in the majority of states and territories.
Will I need to live in the property?
Yes – there are residence requirements.
As an example, to be eligible in Victoria at least one applicant must live in the property for at least 12 months within a year of purchasing. In New South Wales and the Northern Territory it is stipulated that at least one applicant must live in the property continuously for six months. There are similar conditions apply in most other states and territories.
How can I apply?
Applications to receive the grant must be made within 12 months after settlement or the issue of a certificate of occupancy. Most states and territories allow you to make your application through your lender or directly with the government agency that administers the grant.
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