First Home Owner Grant

The First Home Owner Grant (FHOG) scheme was introduced to offset the effect of the GST on home ownership and provide financial assistance to Australians who are buying their first home.

Under the scheme, a one-off grant of up to $7000 is payable to first home owners that satisfy all the eligibility criteria.

The exact eligibility requirements vary in different states but the broad requisites are:

• Applicants must be natural persons and 18 years and over at the commencement date of the eligible transaction (e.g. not a company).
• Applicants must be an Australian Citizen or Permanent Resident at the commencement date of the eligible transaction.
• Applicants and/or their spouse (or de facto) must not have formerly owned residential property either jointly, separately or with another person, anywhere in Australia.
• Applicants and/or their spouse (or de facto) must not have formerly purchased and occupied residential property, anywhere in Australia, as a place of residence.
• Applicants must occupy the home purchased or built, as their principal place of residence for a continuous period of 6 months commencing within 12 months of settlement in the case of established properties, or within 12 months of completion in the case of a home being built.
• Everyone with a relevant interest in the home must be an applicant. For example, every person who will be registered on the Certificate of Title must be an applicant.
  
  

  What is an eligible transaction?

  
  
• A contract made on or after 1 July 2000 for the purchase of a home; or
• A comprehensive home building contract made on or after 1 July 2000; or
• In the case of an owner-builder, building work on the home commenced after 1 July 2000. Source: http://www.firsthome.gov.au/