FIRST HOME OWNER GRANT

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

The broad principles of the grant are:

• Eligible applicants from 1 July 2000 are entitled to a one-off $7,000 payment for an existing dwelling or $14,000 for building a home or buying "off the plan" or a brand new and never been lived in home. 
• Eligible applicants must be natural persons who are Australian citizens or permanent residents, who are buying or building their first home in Australia. Requirements vary between jurisdictions regarding the number of applicants who must be an Australian citizen or permanent resident and how old an applicant must be. Please select the State or Territory under More Information below to determine eligibility. 
• To qualify for assistance, neither the applicant nor their spouse (or de facto) must have owned a home prior to 1 July 2000, either jointly, separately or with some other person.
• Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000. 
• Neither the applicant nor their spouse (or de facto) must have claimed this grant previously. 
• Entering into a binding 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 lawfully can be used as a place of residence. 
• An eligible home must be occupied by the applicant(s) as their principal place of residence within 12 months of settlement or completion of construction of the home. There are minimum periods of occupancy required by jurisdictions. Please select the State or Territory under More Information below to see if a minimum period applies. 
• Application for the grant must be made within 12 months of completion of construction or settlement of the home. 
• Assistance will not be means tested. 
• There is no tax payable on the grant. 
• Joint applicants will be restricted to a single application for a single property and only one payment of the First Home Owner Grant will be made. 
• If the consideration of the home is less than $7,000 then the grant amount paid to the applicant will equal the consideration.

More information is available at www.firsthome.gov.au or for Western Australian Residents www.dtf.wa.gov.au
 
HOME BUYERS ASSISTANT ACCOUNT

Under the Real Estate and Business Agents Act 1978 the Home Buyers Assistant Account was established to provide financial support to first home buyers. 

The scheme provides a grant of up to $2,000 to first home buyers for incidental expenses when they purchase an established or partially built home through a licensed real estate agent.

The scheme is funded from interest paid on real estate agents’ trust accounts and can be used for legal and financial fees associated with the purchase of a property.

The maximum purchase price criteria for the Home Buyers Assistance Account was increased to $400,000 on 22 September 2006, in response to the rising costs of housing in Western Australia.

The broad principles of the grant are:

• The applicant must live in the home for at least the first 12 months
• The applicant must purchase the home through a licensed real estate agent
• The application must be lodged with the Registrar of the Real Estate and Business Agents Supervisory Board no later than 90 days after the date that the offer and acceptance contract to buy the home is accepted 
• The home loan must be financed through an authorised lending institution (such as a bank, building society or credit union) and The purchase price of the home is $400,000 or less.

More information is available at www.reba.wa.gov.au .