Every little bit counts when saving for your deposit. First home buyer grants and concessions can help reduce the amount of cash you need to save, to get you into your first home faster.
Grants and concessions
The First Home Owner Grant (FHOG) is a national scheme that currently offers first home buyers between $10,000 and $26,000 towards the purchase of new or substantially renovated properties.
The grant can go a long way towards your home loan deposit and the costs associated with a property transaction.
The First Home Owner Grant is not means-tested, so your income level won’t affect your eligibility. However, there are limits on the purchase price of the property and the grant doesn’t apply to established homes and eligibility criteria and property conditions vary from state to state.
The FHOG is administered on a state-by-state basis. For further information on terms and conditions in your state, visit the relevant government revenue office website:
*Information accurate as of 25 April 2016. Please refer to your State Revenue Office for the latest criteria.
First Home Buyer Concessions
The First Home Owner Grant is not the only state-based incentive available to first home buyers to make your first home a bit more affordable. You may also be eligible for stamp duty concessions and building grants.
Your mortgage broker will be able to provide you with information, as well as help you arrange your all-important government assistance.
Your local Choice Home Loans broker can explain the grants and concessions available to you and assist with your applications.
New South Wales (NSW)
New South Wales has a number of schemes depending on the borrower and property type.
First Home - New Home
The First Home - New Home scheme commenced from 1 January 2012 and provides eligible purchasers with exemptions from transfer duty on new homes valued up to $550,000 and concessions for new homes valued between $550,000 and $650,000.
Eligible purchaser buying a vacant block of residential land to build their home will pay no duty on vacant land valued up to $350,000, and will receive concessions for vacant land valued between $350,000 and $450,000.
These rates apply from 1 July 2012.
To be eligible for the duty concession or exemption:
at least one buyer must be an Australian citizen or permanent resident
the agreement must be for the purchase of the whole property
you must be a natural person (not a company or trust)
you must be over 18
you or your partner have not previously owned residential property in any form in any State or Territory of Australia
at least one purchaser must occupy the home within 12 months and needs to live in the home for a continuous period of at least 6 months.
If your partner has previously owned a home or received a benefit from us under the First Home -New Home Scheme, you will not be entitled to receive a concession or exemption.
First Home Owner Grant (New Homes) scheme
The First Home Owner Grant (New Homes) scheme (the Scheme) was established to assist eligible first home owners to purchase a new home or build their home by offering a grant.
The grant amount is determined by the date of the eligible transaction. This is the date of the contract to purchase a new home or contract to build a home. For an owner builder, the eligible date is when the building work commences.
For eligible transactions made on or after 1 January 2016, the grant amount is $10,000.
What is a new home?
A new home is a home that has not been previously occupied or sold as a place of residence and includes a home that has been substantially renovated and a home built to replace demolished premises.
To be eligible for the grant:
the contract date must be on or after 1 January 2016
the home is a brand new home
you are over 18
you or your spouse (including de facto spouse) have never held a relevant interest in any residential property in Australia prior to 1 July 2000
However, you may be eligible if you or your spouse, including de facto spouse, have only had a relevant interest in any residential property in Australia on or after 1 July 2000 and you have not resided in that property for a continuous period of at least 6 months.
the value of the property must not exceed the First Home Owner Grant Cap of $750,000
you have not received a first home owners grant in any State or Territory, unless subsequently repaid
you need to live in the home for a continuous period of at least 6 months
at least one applicant is a permanent resident or Australian citizen
each applicant must be a natural person and not a company or trust.
New Home Grant scheme
The New South Wales New Home Grant Scheme was introduced on 1 July 2012 to stimulate the construction of new homes.
The scheme provides a grant of $5,000 towards the purchase of new homes, homes off the plan and vacant land on which a new home will be built.
Information listed here is correct as at 25 April 2016. Please refer to the NSW Office of State Revenue site http://www.osr.nsw.gov.au/grants for the latest information and a full list of eligibility criteria.
Your local Choice Home Loans broker can explain the grants and concessions available to you in NSW and assist you with your applications.
You can receive $10,000 with the FHOG if you are buying or building a new home valued up to $750,000.
Your new home can be a house, townhouse, apartment, unit or similar, but it must be valued at $750,000 or less and be the first sale of the property as a residential premises. You’re not eligible for the FHOG if you or your spouse/partner have already:
Received the FHOG in Australia,
Owned a home in Australia, either jointly or separately, prior to 1 July 2000,
Lived in a home in Australia in which either of you owned or part-owned on or after 1 July 2000, for a continuous period of at least six months
These criteria apply even if your spouse/partner is not an applicant with you for the FHOG.
All FHOG applicants must be at least 18 at settlement or completion of construction (although there is discretion with this age requirement),
You (or at least one applicant) must be an Australian citizen or permanent resident at the time of settlement or completion of the home’s construction, and
You (or at least one applicant) must intend to live in the home as your PPR for at least 12 months, commencing within 12 months of settlement or completion of construction
Established homes are no longer eligible to receive the FHOG. However, if you are buying an established home as your first home and you meet the FHOG eligibility criteria (but for the fact that it is not a new home), you may be entitled to:
First-home buyer duty concession of up to 50 per cent (for homes valued at $600,000 or less), and/or
PPR concession (for homes valued at $550,000 or less)
You can receive a duty concession as a first-home owner buying an off-the-plan land and building package or a refurbished lot.
The off-the-plan concession deducts, from the contract price of your home, the cost of construction or refurbishment which occurs on or after the contract date. This means that you pay duty only on the improved value of the land, the non-deductible costs and the completed construction or refurbishment including GST as at the contract date.
Typically, construction will not have started or is incomplete at the date of the contract.
First-home owners with a family
A duty exemption or concession may be available to eligible first-home buyers with a family who bought their home on or after 1 January 2006.
A full exemption is available where the property’s total value is not more than $150,000. A concession is available where the property’s total value is not more than $200,000.
There are eligibility requirements. Most importantly, you must have a dependent child at the date of the contract of sale. A dependent child means a child under 18 in the custody, care and control of, and ordinarily resident with the person/s buying the property.
If you bought the home with your spouse/partner, you must both be eligible.
You may qualify for the first-home buyer duty reduction and a one-off pensioner exemption/concession when buying your home.
You cannot, however, receive both so you must elect to receive one or the other when you submit your application form. You can calculate your duty to work out which is worth more for you.
The 50 per cent duty reduction applies to homes valued up to $600,000, and
The one-off pensioner exemption/concession applies to homes valued up to $750,000. The full exemption applies up to $330,000 and the concession applies between $330,000 and $750,000
Information listed here is correct as at 25 April 2016. Please refer to the Victorian State Revenue Office site http://www.sro.vic.gov.au/first-home-owner for the latest information and a full list of eligibility criteria.
Your local Choice Home Loans broker can explain the grants and concessions available to you in Victoria and assist you with your applications.
The First Home Owner Grant (FHOG) Scheme was introduced on 1 July 2000 and provided a grant to first home buyers to purchase their first home. The FHOG scheme is fully funded by the ACT Government and administered by the ACT Revenue Office.
The First Home Owner Grant was reduced to $10,000 on 1 January 2016.
Additional eligibility criteria:
Total value of eligible properties (house and land) must be $750,000 or less.
Property must be new or substantially renovated* (grant is no longer available for purchase of established properties)
You are required to reside in the property for a minimum of 12 months.
*A new or substantially renovated property is:
a home that has not been previously occupied or sold as a place of residence; or
a substantially renovated home that, as renovated, has not been previously occupied or sold as a place of residence; or
a property which is subject to an "off the plan" purchase agreement.
Home buyer concession:
The Home Buyer Concession Scheme (HBCS) is an ACT Government initiative administered by the ACT Revenue Office to assist persons in purchasing a new residential home or residential vacant land by charging duty at a concessional rate. The concession ceased for the purchase of an established property as of 1 September 2012. The concession is means tested. Refer to the ACT Revenue site for full details.
Pensioner Duty Concession
The Pensioner Duty Concession Scheme (PDCS) is an ACT Government initiative, administered by the ACT Revenue Office. The PDCS assists eligible pensioners, who own a residential home, to move to accommodation more suited to their needs (for example, moving from a house to a townhouse) by reducing the duty payable on their new purchase of a residential home or residential vacant land.
The Great Start Grant is a Queensland Government initiative to help first home owners to get their new first home sooner. You’ll get $15,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000). You can even buy off the plan or choose to build yourself.
You're at least 18 years of age
You're an Australian citizen or permanent resident (or you're applying with someone who is an Australian citizen or permanent resident)
You or your spouse has not previously owned property in Australia
You're building or buying a new home
The value of the home is under $750,000
Information listed here is correct as at 25 April 2016. Please refer to the QLD Office of State Revenue site https://greatstartgrant.osr.qld.gov.au/ for the latest information and a full list of eligibility criteria.
Your local Choice Home Loans broker can explain the grants and concessions available to you in Queensland and assist you with your applications.
The first home owner grant (FHOG) is a one-off grant payable to first home owners that satisfy all the eligibility criteria.
First home owners purchasing or building a new home may be eligible to receive a grant up to $10,000.
As of 3 October 2015, first home owners purchasing an established home are no longer eligible for the first home owner grant, but may still be eligible for the first home owner rate of duty.
First Home Owner Rate of Duty
When a home buyer is eligible, or would have been eligible, for the first home owner grant, a concessional rate of transfer duty will apply if the value of the dutiable property is below certain thresholds.
You may be entitled to receive the first home owner rate of duty for the acquisition of your home if you are eligible for the first home owner grant, or if you would have otherwise been eligible for the grant except that:
no consideration was paid for the home; or
you purchased an established home; or
you are a resident of the Indian Ocean Territories.
The First Home Owner Grant (FHOG) is paid by the State Government to eligible first home owners.
FHOG applies to the purchase or construction of a new residential property, including a house, flat, unit, townhouse or apartment that meets local planning standards anywhere in South Australia. FHOG ceased for established homes from 1 July 2014.
The residential property must be occupied as each applicants principal place of residence property for a continuous period of at least six months commencing within 12 months of date of settlement for contracts to purchase, or the date construction is completed for owner builders or contracts to build.
The FHOG is a one-off grant of up to $15,000 payable to eligible first home owners depending on the time the contract was entered into, or in the case of owner builders when construction commenced. The First Home Buyers Grants Table outlines the maximum grant payment available.
There are a number of criteria that must be met in order to be paid the grant. Please review the eligibility checklist to ascertain whether you are eligible.
To encourage the construction of new homes in the Territory, from 1 January 2015, a First Home Owners grant of $26,000 will only be available to first home buyers who enter into a contract to construct or purchase a new home, or commence construction of a new home, on or after that date.
The commencement date of an eligible transaction is:
for a contract to purchase or construct a home, the date when the contract is made; or
for an owner builder, the date the laying of the foundations commenced.
Refer to the NT Treasure site for the grants applicable for properties commenced prior to 1 January 2015 as well as all eligibility criteria.
Principal Place of Residence Rebate (PPRR)
The Northern Territory Government provides a stamp duty Principal Place of Residence Rebate (PPRR) to persons purchasing a new home or land on which to build a home.
A new home is a home that has never been previously lived in or sold as a place or residence. Substantially renovated homes may be considered as a new home for the purpose of the PPRR.
The PPRR is an amount up to $7000 off the duty payable.
Information listed here is correct as at 25 April 2016. Please refer to the Tasmanian Department of Treasury & Finance site http://www.sro.tas.gov.au/ for the latest information and a full list of eligibility criteria.
Your local Choice Home Loans broker can explain the grants and concessions available to you in Tasmania and assist you with your applications.