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First Home Buyers
The First Home Owner's Grant is a one-off payment of $7,000 (it was previously up to as much as $14,000) to eligible first home buyers in Australia from 1 July 2000.
A bit of History...
On the 9th March 2001, the Government announced an increase to the amount available under the First Home Owners Grant from $7,000 to $14,000 for those first home buyers who signed a contract to build a new home or to buy a previously unoccupied new home on or after 9 March 2001. The additional $7,000 was scaled back to $3,000 on 1 January 2002. This additional $3000 was removed completely after the 30th of June, 2002 leaving the grant at its current level of $7,000.
The grant will not be means tested. Eligible applicants will receive the same amount regardless of the state or territory in which application is made or the value of their homes or their personal wealth.
The grant may be offset against statutory levies or charges or both. Where payment for a home is less than $7,000, the amount of grant available will be restricted to the amount of consideration paid. If no consideration is paid, for example where a home is a gift or bequest, the applicant will not be eligible for the grant.
You must satisfy the following criteria to be eligible for a first homeowner's grant:
Applicants must be Australian citizens or permanent residents. For applications by couples, the Australian citizenship or residency criteria need be met by only one of the applicants.
Applicants must be natural persons (not a trust or a company, but trustees can apply on behalf of people with legal disabilities - such as mentally incapacitated persons).
Applicants must intend to make the home their principal place of residence and occupy it within one year. However in NSW at least one of the applicants must intend to make the home their principals place of residence and occupy it within one year. The home must be in the same State or Territory in which the application is made.
Therefore, if an applicant purchases a home in Queensland, application must be made to the Queensland Office of State Revenue.
Applicants must be buying or building their first home. Applicants must have entered into a binding contract to buy or build a home or, in the case of an owner-builder, have started construction on or after 1 July 2000.
An applicant or spouse must not have previously owned a residential property or applied for this grant. Ownership of an investment property before 1 July 2000 will exclude you from being eligible to participate in the scheme. Whereas ownership of an investment property from 1 July 2000 will not exclude you from being eligible for the grant. An eligible home includes new and established homes, units, and any other types of self-contained fixed dwellings approved by local councils.
Applications for a grant must be made between the time the applicant becomes eligible and one year after the settlement date of the transaction or the date when the property can be occupied. However the Tax Commissioner has the discretion to extend the period to lodge an application, to allow early applications or authorise the payment of a grant before the applicant becomes eligible.
Application forms are available from the Office of State Revenue in each state, from their websites, or from approved agents. The applicant must supply supporting documentation, including personal identification and proof of the contract. If an application is rejected, applicants can appeal against the Commissioner's decision. An appeal must be made within 60 days after the notice of objection was received.
Applications for First Home Owners Grant is available from the the Office of State Revenue in your state or territory.
