First Home Buyer

To offset the impact of the introduction of the goods and services tax (GST), the Commonwealth, States and Territories agreed to implement arrangements to assist first home buyers through the establishment of the First Home Owner Grant (FHOG).

FHOGs commenced on 1 July 2000. Each State and Territory Revenue Office is responsible for administration of the grant in their respective jurisdiction.

The broad principles of the grant are:

• Eligible applicants will be entitled to a one-off payment of up to $21,000.
• Eligible applicants must be natural persons and at least 18 years of age, who are Australian citizens or permanent residents, who are buying or building their first home in Australia.
• To qualify for assistance, neither the applicant nor their spouse (or partner) can have owned a home prior to 1 July 2000, either jointly, separately or with some other person, or purchased a home on or after 1 July 2000 and occupied that home.
• Entering into a building contract or commencement of building, in the case of owner-builders, must have occurred on or after 1 July 2000.
• An eligible home will be located in Australia and will be a new or established house, home unit, flat or other type of self contained fixed dwelling that meets local planning standards.
• An eligible home must be intended to be a principal place of residence and occupied for a continuous period of 6 months commencing within 12 months of completion of the transaction (settlement or completion of construction).
• Assistance is not means tested.
• Joint applicants will be restricted to a single application for a single property and only one grant will be made.

More information is available at http://www.firsthome.gov.au

Australian Government`s 2008 FHOG - Press Release

Realestate Institute of Australia 2008 FHOG - Press Release