New Year, New Home!

The first home owner grant is a government payment designed to assist and support home ownership across the nation. For individuals who are eligible, the FHOG is a great foundation for any new home owner. Initially the FHOG was rolled out nationwide in 2000 to offset the effects of the GST on homebuyers and has since proven to be a substantial economic stimulus tool.

Administered and funded by each state and territory government, the eligibility criteria and grant amounts vary across each state and territory - in most places it applies to new homes only. Here’s a summary of what is available to help you on your way towards raising your deposit.

New South Wales
In NSW there is a $10,000 First Home Owner Grant for new home purchases up to a value of $600,000, or up to a value of $750,000 if you’re a builder of new home. You must live in the home you buy for a continual period of months in the first year of owning the property in order to be eligible to receive the grant (unless you work in the Australian Defence Force).

Whilst the NSW Government doesn’t offer first home owners a grant on established properties, they do offer a stamp duty exemption for all homes up to a value of $650,000 and stamp duty reductions on homes up to the value of $800,000.

You could potentially be eligible for an exemption from transfer duty if you buy a new home valued up to $550,000, or vacant land up to $350,000. You can get a concession on the transfer duty for new homes valued between $550,000 and $650,000, or vacant land valued between $350,000 and $450,000.

Victoria
For new builds valued up to $750,000 a FHOG is available in the amount of $10,000 for city purchases, or $20,000 if your purchase in regional Victoria. Victoria doesn’t offer a FHOG for established properties. Victoria doesn’t offer a FHOG for established properties.

First home buyers may also be eligible for various stamp duty concessions. The Victorian government also offers a full stamp duty exemption to first home buyer on new and established properties valued up to $600,000. Stamp duty concessions are offered on a sliding scale for properties valued between $600,001 and $750,000.

The Victorian Government have various other concessions available, these include:

  • Young Farmers Exemption or Concession for a young farmer buying their first farmland property.
  • Off-the-plan duty concession for Off-the-plan properties or refurbished lots.
  • Principal place of resident (PPR) concession for new and established homes up to the value of $550,000 if you intend to live there as your primary home.
  • First home buyers with at least one dependent child may also be eligible for a duty concession on a property valued up to $200,000.

Queensland
The Queensland First Home Owners’ Grant offers $15,000 for eligible first home buyers who are buying or building a new home up to the value of $750,000. The Queensland Government do not offer a FHOG for established properties.

The Queensland government also offers full stamp duty exemption to first home buyers of new properties up to the value of $500,000.

Western Australia
The Western Australian government offer a FHOG of $10,000 for new builds or “substantially renovated” homes. Depending on the location, the FHOG is available for a home up to the value of $750,000 or $1 million.


Whilst WA do not offer a FHOG on established properties, a stamp duty exemption is offered on all homes up to the value of $430,000. Stamp duty concessions are available on a sliding scale for properties valued between $431,000 and $530,000.

South Australia

The South Australian government offers a $15,000 First Home Owners Grant to purchasers of new builds up to the value of $575,000. A FHOG of $7,000 is available on established properties, depending on the area and buyer. To be eligible for these grants you must live in the property for at least 6 months within the first year of purchasing the property.

For those of you buying off-the-plan, you may also be eligible for a stamp duty concession of up to $21,330.

Australian Capital Territory

Our nations capital offers a First Home Owner Grant of $7,000 and is applicable to new, substantially renovated, or off-the-plan properties valued up to $750,000. Those who claim the FHOG are also required to live in the property for at least 1 year within the first year of owning it.

The ACT government doesn’t offer stamp duty concessions, however, does offer first home buyers the opportunity to defer payment of stamp duty.

 

Tasmania

The Tasmanian government is currently offering a FHOG of $20,000 until June 30th 2019, after this time it is expected to revert to being just $10,000. First home owners purchasing a new home, off-the-plan home or building a home up to any value are eligible for the FHOG.

Whilst Tasmania do not offer FHOG for established properties, they do offer a 50% concession on stamp duty to first home buyers of established properties up to the value of $400,000.

Northern Territory

The Northern Territory are generous when it comes to First Home Owners Grants, with a variety of incentives on offer. The FHOG is a huge $26,000 for new homes, builds and established homes. A stamp duty discount of up to $23,928.60 is also on offer to first home buyers purchasing an established home valued up to $650,000.

The generosity doesn’t stop there, a home owner renovation grant of up to $10,000 is also available to eligible recipients of the First Home Owner Discount. There is also a $2,000 grant available to eligible recipients for household goods.

 

It is important all First home buyers keep up to date with grants and stamp duty concessions in their state as they can change over time and sometimes, without a substantial amount of notice.

Surround yourself with a team of professionals who can provide you with ongoing support and expertise in securing your financial future.

The Addisons Team are here to help!

This article 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. All loans are subject to lenders terms and conditions – fees, charges and eligibility criteria apply.