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First Home Owners Grant Changes

Jul 3rd, 2015

First Home Owners Grant Changes

From 1 October 2012, the $7 000 First Home Owner Grant will be replaced by the $15 000 First Home Owner Grant (New Homes) Scheme.

First home owners who purchase or build a new home where the eligible transaction commencement date (contract date) is on or after 1 October 2012 will be eligible for the $15 000 grant. The grant will reduce to $10,000 on 1 January 2016 for eligible transactions, which have a commencement date (contract date) on or after 1 January 2016.

The $7 000 first home owner grant for established properties ended the 30 September 2012 and will not be available where the eligible transaction commencement date (contract date) is on or after 1 October 2012.

To qualify for the First Home Owner Grant, you must meet the following
eligibility criteria:

    • Each applicant is a natural person and not a company or trust.
    • At least one applicant is a permanent resident or Australian citizen.
    • Each applicant must be at least 18 years of age.
    • All applicants and/or their spouse/de facto have not owned a residential
      property, jointly, separately or with some other person, in any State or
      Territory of Australia before July 2000.
    • All applicants and/or their spouse/de facto have not previously owned a
      residential property jointly, separately or with some other person in any
      State or Territory of Australia, and occupied that property for a continuous
      period of at least six months.
    • Each applicant has entered into a contract for the purchase of a home or
      signed a contract to build a home on or after 1 July 2000. In the case of
      an owner-builder, laying of the foundations commenced on
      or after 1 July 2000.

The total value of the property does not exceed the cap amount for
eligible transactions which commenced on or after 1 January 2010.
The cap amount is reviewed annually and the cap applicable to your
application is determined by the commencement date of the eligible
transaction. This is the date of the contract to purchase or build a home
or, for an owner builder, the date the laying of foundations commenced.

First Home Owner Grant Cap

The current cap of $835 000 applies where the eligible transaction commencement date falls on or after 1 January 2011 and on or before 30 September 2012.
On 1 October 2012, the cap reduces to $650 000. The $650 000 cap will apply to all new home transactions where the commencement date of the eligible transaction is on or after 1 October 2012. Applicants who purchase a new home or build a home which has a total value of more than $650 000 will not be eligible for the First Home Owner Grant (New Homes) Scheme.