What is the First Homeowners Grant and Concession?
What is the First Homeowner Grant (FHOG)?
The First Homeowner Grant (FHOG) is a one-time payment aimed at incentivizing and supporting first-time homebuyers in their pursuit of buying or building a new house as their primary residence. This grant typically amounts to $10,000, or the lesser of the purchase price or construction cost of the dwelling. Each eligible transaction qualifies for only one grant, even if two individuals jointly purchase a house.
What is the First Home Buyer Stamp Duty Concession or Exemption?
The First Home Buyer Duty Exemption or Concession seeks to ease the financial burden of stamp duty for first-time homebuyers, making it more accessible for them to enter the real estate market. If you are a first-time homebuyer and your property’s value is $600,000 or less, you may qualify for a full exemption from paying stamp duty. For properties valued between $600,001 and $750,000, you could be eligible for the first home buyer duty concession. It’s important to note that this exemption or concession can only be utilized once. If you or your partner have already taken advantage of it, you are not eligible to do so again. Unlike the First Homeowner Grant, it doesn’t matter whether the property is new or pre-existing, or even vacant land.
Am I Entitled to Both the Grant and the Concession?
To clarify, the duty exemption or concession does not affect your eligibility for the First Homeowner Grant (FHOG). The FHOG is a financial payment provided to you, whereas the first-home buyer duty exemption and concession reduce the amount of land transfer duty you must pay. So, the answer is YES, you are entitled to both if you meet the eligibility criteria.
Key Points to Remember:
- The grant is a one-time opportunity.
- You must be a “natural” person (i.e., a real human, not a company or trust).
- It is exclusively available to first-time homebuyers who have not previously owned property with a spouse or partner.
- You must be a permanent resident or an Australian citizen.
- After construction, you must reside in the house for at least 12 months.
- The property’s purchase price should not exceed $750,000.
- The property must be new.
- You must be at least 18 years old at the time of applying.
For more information specific to your situation visit the SRO website.
Contact us to learn more or if you have any questions.
This is commentary published by HazeLegal for general information purposes only. This is not meant to be taken as particular advice. You should seek your own legal and other advice for any question, or for any specific situation or proposal, or alternatively get in touch with the writer at http://hazelegal.com.au before making any final decision. The content also is subject to change. A person listed may not be admitted as a lawyer in all States and Territories.
© HazeLegal Australia 2023.