First Home Owners Grant Act
The First Home Owners Grant Act was established by the Australian Capital Territory to help first time home owners purchase or build a new home sooner than might otherwise be able to afford without the grant. While the act was in force for some years it ended on July 1, 2019. This means that anyone who purchased or built or had built a new home with the contract commencing after July 1, 2019 is no longer entitled to receive the $7000.00 grant under the First Home Owners Grant (FHOG).
Any new home buyer who entered into a transaction to buy or build a new home prior to the July first date may be still be eligible for the grant.
Eligibility for the Grant
In order to be eligible for the First Home Owners Grant a buyer must meet the following criteria
- Must be purchasing or building a new home (or substantially renovated home) on or after January 1, 2017 and prior to July 1, 2019.
- The total value of the property must be worth no more than $750,000
- The buyer must complete the First Home Owner Grant Application Smartform and submit all the necessary required documentation with a year of completing the transaction.
- Anyone with a significant interest in the home being purchased must have their name and information included on the application
- All applicants must be at least 18 years of age
- At least one of the applicants must be an Australian Citizen or a Permanent resident of Australia
- At least one of the applicants must move into the home within 12 months of settlement or completion of construction
- At least one of the applicants must live in the home as their main residence continuously for at least a year.
Applicants are not Eligible If
- They have already receive money for the First Home Owners Grant before
- If an applicant for the grant has owned any significant residential property anywhere in Australia prior to July 1, 2000
The ending of the First Home Owners Grant didn’t leave potential homeowners without any Government help when looking to purchase a home since the grant was replaced with the Home Buyer Concession Scheme, which was updated as of July 1, 2019.
Unlike the FHOG the Home Buyer Concession Scheme actually makes it possible for more people to purchase a home than the First Home Owners Grant allows. Under the Home Buyers Concession Scheme not only can homebuyers buy new homes, they can also purchase established homes as well as vacant residential land.
Under the Home Buyers Concession Scheme homebuyers won’t receive any money, but they will not have to pay duty on the property they buy.
However, like the FHOG, people wishing to take part in the Home Buyers Concession Scheme must meet certain criteria. If you are hoping to be able use this scheme to off set some of the expense of purchasing your first home then you may want to look into the requirements for being able to take advantage of the Home Buyers Concession Scheme.