First Home Buyers

What is the FHOG?
The First Home Owner’s Grant (FHOG) was introduced by the Australian Commonwealth Government and requires all State and Territory Governments to provide financial assistance for first home buyers, the aim being to offset the impact of the goods and services tax (GST) on the purchase of their first home. The grant is not taxable and will therefore not be means tested.

Is FHOG policy the same in every State and Territory?
No, the policy has differerences between one State/Territory to another. For example, in Queensland, people who buy their first home and receive the FOHG, may also be eligible for a transfer duty and/or mortgage duty concession. Further, In addition to the FHOG, concessions exist for the purchase of a home that may not be a first home purchase. There are also  ‘minimum periods of occupancy’ requirements that exist/differ between some States and Territories. There are also differences in, requirements regarding the number of applicants who must be Australian citizens or permanent residents, and other factors such as the age  of applicant(s).

Who is eligible for the FHOG?
Eligible applicants must:

• Be natural people, whom are Australian citizens or permanent residents, and are buying or building their first home in Australia (there may be some state by state differences as per above).
• Not have owned a home prior to 1 July 2000, either jointly, separately or with some other person. This applies to an applicant, their spouse or those in a de facto relationship.
• Not have owned and occupied a home after 1 July 2000. This applies to an applicant their spouse or those in a de facto relationship.
• Not have claimed the FHOG previously. This applies to an applicant their spouse or those in a de facto relationship.

Which homes are eligible for FHOG?
An eligible home must 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.
• Occupied by the applicant(s) as their principal place of residence within 12 months of settlement or completion of construction of the home.

What other conditions must be fulfilled to be eligible for FHOG?
In the case of owner-builders, entering into a binding contract or commencement of building must have occurred on or after 1 July 2000. Also, application for the FOHG must be made within 12 months of completion of construction or settlement of the home.

DISCLAIMER: Information in this article is valid as at 18 June 2006 and is subject to change without notice.

It should also be stated that people considering applying for the FOHG should refer to their particular State or Territory guidelines (as we have stated they differ) for further information and perhaps list the link to each state and territory website that contains their particular terms and conditions – OR CONTACT ONE OF OUR EXPERIENCED FINANCE CONSULTANTS TO DO THIS FOR THEM – (ie customer/lead service).

Standard Capital consultants are available at any time for a consultation, so please feel free to call us on (03) 9670 1770 .