An Introduction to the First Home Buyers Policies

First Home Buyer Assistance Scheme (FHBA) and First Home Owners Grant (FHOG) are the current national schemes introduced by the government to benefit the first home buyers. It is funded by the States and Territories and administered under their own legislations.

First Home Buyer Assistance Scheme (FHBA)

This scheme provides an exemption or concession on stamp duty. An exemption from transfer stamp duty for eligible first home buyers purchasing a new home or existing home valued up to $650,000 and vacant land up to $350,000. Concessions are available on stamp duty for homes valued between $650,000 and $800,000 and vacant land valued between $350,000 and $450,000.

To be eligible for the Scheme, a home buyer (applicant) must satisfy the following requirements:

• The Contract for sale of land is entered into after 1 July 2017
• The applicant is an individual over 18 years old
• The applicant and the spouse (including de facto spouse) have never owned any residential property in Australia
• At least one applicant is an Australian citizen or permanent resident
• At least one applicant will move in within 12 months after settlement for a consecutive period of 6 months

First Home Owners Grant (FHOG)

This scheme provides a one-off grant payable to the eligible first home owners. The amount of subsidy on stamp duty and the grant varies in each State and Territories. In NSW, the grant amount has been revised to $10,000 if the transactions was made on or after 1 July 2017.

To qualify, the purchase price of your new home must be no more than $600,000. If you’re buying land to build a new home, the total price – including the land and home – must be no more than $750,000.

To be eligible for the Scheme, a home buyer (applicant) must satisfy the following requirements:

• The home is a new home (including renovated home)
  • which has not been previously occupied – this includes occupation by the builder, a tenant or other occupant; and
  • which has never been sold as a place of residence and it must be the first sale of that home; or
  • which has been substantially renovated or the home has been built to replace a demolished premises
• The applicant is an individual over 18 years old
• The applicant and the spouse (including de facto spouse) have never owned any residential property in Australia prior to 1 July 2000
• At least one applicant is an Australian citizen or permanent resident
• At least one applicant will move in within 12 months after settlement or completion for a consecutive period of 6 months

However, an applicant may be eligible if he/she or his/her spouse, including de facto spouse, have owned any residential property in Australia on or after 1 July 2000 and the applicant has not resided in that property for a continuous period of at least 6 months.

If application is made through the applicant’s financial institution, the grant will be made available for settlement or for the first draw down on contract to build. If application is made after completion, it must be made within 12 months of completion. It is an offence to apply for the Scheme if the applicant is not an eligible person.

Please contact our firm for advice specific to your circumstances.

Disclaimer: This publication is general information only and does not purport to provide legal advice. We do not accept responsibility for any losses for reliance upon this publication.