• Home
  • About Us
  • Services
    • Purchase A HomePurchase A Home
    • RefinanceRefinance
    • Joint ownershipJoint ownership
    • No Deposit LoansNo Deposit Loans
    • Interest-only LoansInterest-only Loans
    • Interest only loan with offsetInterest only loan with offset
    • Investment LoanInvestment Loan
    • Interest only Investment loanInterest only Investment loan
    • Car LoansCar Loans
    • Construction LoansConstruction Loans
    • Low Deposit LoansLow Deposit Loans
    • RentvestingRentvesting
    • Bridging LoansBridging Loans
    • Land Equity Construction LoanLand Equity Construction Loan
    • Land Investment LoansLand Investment Loans
    • Home loans for single parentsHome loans for single parents
    • Home loans for nursesHome loans for nurses
    • Home loans for DoctorsHome loans for Doctors
  • Process
  • Resources
    • BlogsBlogs
    • GuideGuide
    • CalculatorsCalculators
    • Property ReportProperty Report
  • Contact Us
1300 796 937
...
29, June, 2020 - Purchasing A Home

7 minute Read

What is the First Home Owner Grant?

Joseph Daoud

7 minute Read

The First Home Owner Grant (FHOG) may be your one step closer to unlocking your first dream home.

Owning the keys to your first home is the Australian dream, but it’s a dream that comes with a very expensive price tag.

With the current hiking rates, increasing cost of goods, and escalating petrol prices, saving up and buying your first home seems to be an impossible goal to achieve. Fortunately, the FHOG exists to make your dream come to life sooner.

What is the FHOG?

The FHOG is a scheme funded and administered by the states and territories. It provides one-time financial assistance to first home buyers who meet certain eligibility criteria.

It has undergone many changes since its inception in 2000. The grant differs across the states and territories, which means each region has its eligibility criteria.

Who are eligible for the FHOG in Australia?

As mentioned, the criteria differ per state and territory, but usually, you must be:

  • An Australian citizen or a permanent resident of Australia
  • At least 18 years old
  • A ‘natural’ person
  • Should live in the house for at least six months

first home owner grant eligible and ineligible

On the other hand, typically, you are ineligible for the grant if you or your spouse:

  • Has previously received the FHOG in Australia
  • Owned a property in Australia, either jointly or separately, before 1 July 2000
  • Is a temporary Australian resident
  • Is a company/trust

It’s better to check with your state or territory for certain criteria to ensure that you qualify for the grant. If your circumstance changes, it’s important to contact your respective state or territory to guarantee that you do not violate any rules and pay penalty fees. Contact our expert brokers for free to help you better determine your situation.

What are the eligibility criteria for each region and state?

New South Wales

A. Grant

NSW offers $10,000 when you buy or build your first new home. To be eligible, the newly constructed or substantially renovated property should not exceed the price of $600,000. It is considered substantially renovated if most of it is removed or replaced, it is not occupied before or during renovation, and it is the first time the house is sold after renovation.

If you purchase vacant land and build the house, the combined value of homebuilding and the land should not exceed $750,000.

B. Exemption/Concession

If you are a first home buyer, you may qualify for a concessional rate or exemption from stamp duty (also known as transfer duty) under the First Home Buyers Assistance Scheme (FHBAS).

From August 2021, stamp duty exemptions are available to new and substantially renovated properties valued at less than $650,000 and land valued at less than $350,000.

Then, you may qualify for a concessional rate if you buy new or substantially renovated properties valued between $650,000 and $800,000 and land valued between $350,000 and $450,000.

concessions and exemptions in nsw

On 21 June 2022, the NSW government introduced the First Home Buyer Choice scheme, which will be implemented during the second half of 2022. This scheme will allow first home buyers to choose between an annual property tax and stamp duty if the property is priced up to $1.5 million.

Queensland

A. Grant

From 1 July 2018, Queensland offers a grant of $15,000 to first home buyers who meet the criteria. This grant is available if you purchase or build a new property valued at less than $750,000.

You may also be eligible for this grant if you buy a substantially renovated house provided that it is substantially renovated before you buy it and hasn’t been occupied since the renovation.

B. Exemption/Concession

You can access a first home concession if you buy a property valued at less than $550,000. If you purchase vacant land, you may qualify for the first home vacant land concession if the land value is less than $400,000.

concessions and exemptions in queensland

Victoria

A. Grant

From 1 July 2021, Victoria provides a grant of $10,000 when you purchase or build a new home in metropolitan and regional Victoria. To be eligible, the property should be $750,000 or less.

However, you will get $20,000 for a new home built in regional Victoria if your contract was signed from 1 July 2017 to 30 June 2021.

B. Exemption/Concession

If you enter and settle the contract on or after 1 July 2017, you may be eligible for a stamp duty exemption or concession. However, if your contract is dated before 1 July 2017, you may be eligible for a 50% stamp duty reduction.

Homes valued at less than $600,000 are exempt from stamp duty. On the other hand, homes valued between $600,001 to $750,000 may be eligible for a concession.

concessions and exemptions in victoria

ACT

A. Grant

The FHOG is only available to signed and exchanged contracts on or before 30 June 2019. To be eligible, the new or substantially renovated property’s total value (house and land) should be $750,000 or less.

The amount of the grant depends on the commencement date. If your contract was signed and exchanged from 1 January 2016 to 31 December 2016, the grant is $10,000. On the other hand, if the commencement date includes 1 January 2017 to 30 June 2019, the grant is $7,000.

B. Exemption/Concession

The FHOG was replaced by the new Home Buyer Concession Scheme on 1 July 2019. If you are eligible for this grant, you may receive a stamp duty exemption or concession depending on several factors.

concessions and exemptions in act

South Australia

A. Grant

In South Australia, you can receive up to $15,000 if you purchase or build a new home valued at $575,000 or less.

B. Exemption/Concession

No stamp duty concessions apply specifically for first home buyers in SA. It is calculated based on the purchase price or the property’s market value, whichever is higher.

Tasmania

A. Grant

If you purchase or build a new property in Tasmania, you get $30,000 if your transaction commences between 1 April 2021 and 30 June 2023. However, if your transaction commenced between 1 July 2016 and 31 March 2021, you get $20,000.

B. Exemption/Concession

No stamp duty concessions apply if you buy or build a new home. However, if you buy an established house, you may qualify for a 50% discount on stamp duty if the home is valued at $600,000 or less.

discount on stamp dutyWestern Australia

A. Grant

A grant of $10,000 applies if you purchase or build a new or substantially renovated house, but it does not apply to established homes. If you buy or build a house in the south of the 26th parallel, the value of the land should not exceed $750,000. If it is in the north of the 26th parallel, the value should not exceed $1 million.

B. Exemption/Concession

Stamp duty exemptions are available for homes valued at $430,000 or less and land valued at $300,000 or less. Concessions apply to new houses valued between $430,001 and $530,000 and land valued between $300,001 and $400,000.

concessions and exemptions in western australiaNorthern Territory

A. Grant

From 7 May 2019, you may be eligible for a grant of $10,000 if you buy or build a new home. The value of the home or land does not affect the grant.

B. Exemption/Concession

Currently, stamp duty exemptions are not available in the Northern Territory.

Looking to own your first home?

Talk to our brokers for free to help you better assess your eligibility for the grant. We work with over 40 lenders and banks, so we may have better deals and more loan options to help you secure the keys to your first home – better loans, quicker home!

If you live in Sydney, you might be interested in our First Home Buyer Seminar on 12 July in Fairfield and on 14 July in Kogarah. Register for free, and know the ins and outs of owning your first home from our panel of expert speakers. Start turning your dream home into a reality!

the first home buyer seminar banner

You can also check out our videos from our last seminar here.

Have a question? We’re online at info@itssimple.com.au, and we also answer the phone. Contact us today on 1300 796 137!

More Articles.

...
June 21, 2022 - Blog
Choosing Between Fixed and Variable Rate Home Loans

Considering the recent interest rate hikes, more than ever, it’s important to consider all options to avoid paying more on your mortgage. Following the RBA’s 50-basis-point hike in the cash rate on 7 June 2022, it is no surprise that many banks increased their rates as well. Australia’s big four already announced that they would […]

Joseph Daoud

5 minute Read

...
June 16, 2022 - Blog
Surviving RBA’s highest rate hike in 22 years

The Reserve Bank of Australia’s highest single-raise cash rate in 22 years leaves everyone thinking, ‘How can I handle this?’ In a statement made by RBA governor, Philip Lowe, the Board decided to increase the interest rate by 50 basis points leading to the cash rate of 0.85%. So, where does this leave you? Here’s […]

Joseph Daoud

6 minute Read

...
May 15, 2022 - News
Price Caps Raised For Home Guarantees

Prime Minister Scott Morrison has just recently declared that the government’s Home Guarantee Scheme will have higher maximum property prices and more available places per year. From July 1, this price upgrade will qualify houses in two out of five (40%) suburbs nationwide for the scheme. This is up from 24.1% according to analysis by […]

Joseph Daoud

3 minute Read

Let’s Have A
Chat.

Contact us

Pages

  • Home
  • About Us
  • Legal

Services

  • Purchase A Home
  • Car Loans
  • Construction Loans
  • Investment Loan
  • Low Deposit Loans
  • Refinance Home Loan

Resources

  • Blogs
  • Guide
  • Calculators
  • Free Property Report
  • Let’s Get Started
  • Contact Us

Legal stuff:

It's Simple 2022 © Its Simple Pty Ltd. Trading as It’s Simple Finance (Credit Representative 495852) is authorised under Australian Credit Licence 389328. ABN: 22 637 831 157 | ACN: 637 831 157

Interest Rates are correct as at 27/05/2021 and subject to change at any time. The interest rate provided applies for a 4 year fixed rate with a LVR of 80% or lower. The comparison rate is based on a loan amount of $150,000, over a 25 year term.

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs.

We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.

Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

Check out our Privacy Policy.