First Home Owner Grant

The Commonwealth grant is $7,000, but is administered by the state and territory governments, to whom you must apply. The relevant department in each state and territory can advise you on eligibility. Some mortgage brokers can provide free advice on how to apply for the FHOG. Generally, you find out if you are eligible prior to searching for a property, as you know then what deposit you have, i.e. your deposit + grant. Also some state and territories may offer additional grants, but you would need approach them to find out what the current situation is with regards to state-based grants. The White Pages telephone directory has contact details for all government departments, or you can go to the relevant websites.

The eligibility rules may vary for each state and territory, so be sure to read the information sheets that come with the application form thoroughly, and ask about anything you do not understand. In general the grant applies to both new and established dwellings including houses, flats, units, townhouses and apartments. Houseboats and mobile homes (such as caravans) are eligible. The dwelling must be used as your principal place of residence within 12 months of the date of settlement in the case of an established home, or 12 months from the construction completion date of a new home. The application for the grant must be made within this 12-month period. There are minimum months of occupancy required by law, this may vary between states. The contract to purchase an established home or to build a new home must have been signed no earlier than 1 July 2000.

Eligible applicants are Australian citizens or permanent residents, who are buying or building their first home in Australia. In some states, only one person may need to be an Australian citizen or permanent resident. The age range of applicants may vary from state to state. If either you or your spouse (or defector) own or have owned a home, jointly, separately or with some other person, you are ineligible for the FHOG. You must not have claimed the grant before. The grant is be no means tested or taxable.

The FHOG is administered under the relevant First Home Owner Grant Act 2000 in each state and territory, and the Commissioner of State Revenue makes the final decision. To speed up the application process you should supply all supporting documentation including the completed application form, photographic proof of identity (original or certified copy) and the original (no photocopies) fully executed Contract of Sale or Contract to Build. You should check the supporting documentation requirements for your state or territory.

Once your application is successful your grant will be paid after settlement for an established home, and after Certificate of Occupancy/Completion for a new home. You can also apply for a FHOG via Approved Agents, which include many banks and other financial institutions.
If your application is unsuccessful, you can appeal to the Commissioner of State Revenue, in your state or territory. You should check with them for the procedures for appealing. You can find out more about the FHOG at http://www.firsthome.gov.au/.

Summary

You may be eligible for the First Home Owner Grant (FHOG) if:

• The dwelling is a new or established home which you will occupy.
• You or your spouse (de facto) is an Australian citizen or permanent resident.
• You do not own or have not owned a home.
• You have not claimed for the FHOG in the past.
• If you supply all required supporting documentation.

Article correct at its author date: Dec 2006. Copyright Virtual Office Space, Any unauthorised reproduction of this article will be prosecuted to the full extent of the law. Credit Cards Australia.

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