First home owner grants
First Home Owner Grant (New Homes) scheme offers a $10,000 grant for the purchase or construction of new homes. The value of the property of a newly constructed property must be under $600,000. If buying land to build a property the combined land and dwelling valued must be less than $750,000.
Are stamp duty concessions available?
Yes, the First Home Buyers Assistance scheme provides first home buyers with exemptions from transfer duty on new homes valued at less than $650,000 and concessions for new homes valued between $650,000 and $800,000. No duty is payable by eligible purchasers buying a vacant block of residential land valued at up to $350,000, while concessions are available for vacant land purchased for between $350,000 and $450,000.
| Purchase Price | First Home – New Home Duty |
|---|---|
| $650,000 | $0 |
| $680,000 | $6,290 |
| $700,000 | $10,490 |
| $750,000 | $20,990 |
| $770,000 | $25,190 |
| $800,000 | No discount |
Source: Revenue NSW
Am I eligible for the First Home Owners Grant?
The eligibility criteria for first home buyers differs slightly between the states and territories but generally, eligibility criteria includes:
- You must be a first home buyer as a person, not as a company or trust.
- At least one applicant must be a permanent resident or Australian citizen.
- Each applicant must be at least 18 years old.
- You or your spouse, partner or co-purchaser must not have previously owned an interest in land in Australia which had a residence on it, before 1 July 2000.
- You or your spouse or partner cannot have lived in a residential property which you owned from 1 July 2000.
- You or your spouse, partner or co-purchaser may not have claimed the grant previously.
- You must occupy your first home as your principal place of residence within 12 months of the construction or purchase of your home and the minimum period of occupancy is 12 continuous months.
There are other state-specific conditions as well, which will depend on the state you’re buying in.
All your questions about the first home owners grant answered
To help you to understand the First Home Owners Grant Finder have compiled a list of answers to some of the most frequently asked questions:
- What happens if I move out of my home in the first 12 months? If you have lived in your home for a continuous period of six months, you may keep the grant, but if you move out before this time, you need to repay the grant.
- Can I apply for the first home owner grant if I’m a temporary resident? Unfortunately first home owner benefits aren’t available for temporary residents. They also can’t be retroactively applied for once permanent residency is obtained.
- My partner and I are buying the property jointly and neither of us has owned a property before. Do we each get a grant? No. A single grant is payable per property transaction not per person.
- Does my income affect the grant and is the grant taxed? No, the grant is not means tested and you do not have to pay tax on it.
- What sort of home qualifies me for the grant? Depending on the state or territory an eligible home may be a new or established Australian house, home unit, flat or other type of self contained fixed dwelling that meets local planning standards. The specific rules vary by state.
- Will I be eligible for the First Home Owner if I buy an on-site home in a caravan park? You would qualify for the grant provided the home is fixed (i.e. not moveable), but you would not be eligible if you bought a moveable home such as an unfixed mobile home or a caravan.
- I am buying an existing home. Does that qualify me for the grant or does it have to be a new home? This depends on the state, with many now limiting the grant to purchasers of new or substantially renovated homes.
- I’m buying a home in Australia but I already own property outside Australia, does that mean I don’t qualify for the grant? You can be eligible for the grant provided you have not owned property in Australia before.
- I inherited a property. Can I claim the First Home Owner Grant for that? No. You must be a buyer or builder of the property.
Have a look at our website to see what properties would qualify if you are a first home buyer.
Information sourced from: Finder.com.au.
