What exactly is it, why does it exist and are you eligible to receive it?

The First Home Owner Grant (FHOG) is a government initiative to help people purchase their first home in Australia. It is a national scheme originally introduced in 2000 to offset the effect of the GST on first home ownership. The grant is funded by the States and Territories who each have their own criteria and legislation for administering the grant to eligible home owners. First Home Owners who satisfy all the eligibility criteria are paid a “one off” grant which is used towards the purchase of their first home.  The amount of the grant can vary greatly from place to place.

Eligibility differs between each State and Territory in Australia.

In Queensland, the First Home Owners’ Grant has been boosted to $20,000, but only until 30 June 2017 and only if you are buying a ‘New Home’. A New Home is defined as:

A brand new dwelling that has not been previously occupied as a place of residence or sold as a place of residence. This may include a:

• home that is a substantially renovated home (in certain limited circumstances).
• house that has been moved from one site, and fixed as a home to a different site, so long as it has not been occupied or sold as a place of residence since being fixed to the new site.

Types of dwellings include houses, units, duplexes, townhouses and granny flats built on a relative’s land.

In addition to buying a New Home you must also meet the following other eligibility criteria:

• You must be an Australian citizen or permanent resident (or applying with someone who is).
• You or your spouse must not have previously owned property in Australia.
• You must be at least 18 years of age.
• You must be buying or building a brand new home, valued under $750,000.
• You must move into your home within 1 year of the completed eligible transaction and you must live there for at least 6 months continuously in order to keep the grant.

The Queensland Government offers a comprehensive eligibility test on their website at: https://firsthomeowners.initiatives.qld.gov.au/.

If you or someone you know is looking to buy and seeks to determine eligibility for a FHOG we will be happy to help and recommend the right solution.