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First Home Owner Grant Scheme

FHOG is a national scheme which was introduced by the government on 1 July 2000. It is funded by the States and Territories and administered under their own legislations.

There are 2 parts of the Scheme: 1. an exemption or concession on stamp duty; and 2. a one-off grant payable to the eligible first home owners. The amount of subsidy on stamp duty and the grant varies in each State and Territories. In NSW, the grant amount has been revised to $10,000.- if the transactions was made on or after January 2016. An exemption from transfer stamp duty for eligible first home buyers purchasing a new home valued up to $550,000 and vacant land up to $350,000. Concessions are available on stamp duty for homes valued between $550,000 and $650,000 and vacant land valued between $350,000 and $450,000.

To be eligible for the Scheme, a new home buyer (applicant) must satisfy the following requirements:

  • the home is a brand new home
    • which has not been previously occupied - this includes occupation by the builder, a tenant or other occupant; and
    • which has never been sold as a place of residence and it must be the first sale of that home; or
    • which has been substantially renovated or the home has been built to replace a demolished premises.
  • the applicant is over 18
  • the applicant or the spouse (including de facto spouse) have never owned any residential property in Australia prior to 1 July 2000

However, an applicant may be eligible if he/she or his/her spouse, including de facto spouse, have owned any residential property in Australia on or after 1 July 2000 and the applicant has not resided in that property for a continuous period of at least 6 months.

  • the value of the property must not exceed the amount of $750,000.-
  • the applicant have not received a first home owners grant in any State or Territory, unless subsequently repaid
  • the applicant must occupy the property as the principal place of residence for a continuous period of at least 6 months
  • at least one applicant is a permanent resident or Australian citizen
  • each applicant must be a natural person and not a company or trust.

If application is made through the applicant’s financial institution, the grant will be made available for settlement or for the first draw down on contract to build. If application is made after completion, it must be made within 12 months of completion. It is an offence to apply for the Scheme if the applicant is not an eligible person. The penalties for the offence is up to $11,000.

Disclaimer: This publication is general information only and does not purport to provide legal advice. We do not accept responsibility for any losses for reliance upon this publication.

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