FAQ's - Answers

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Answers to Frequently Asked Questions

What are the eligibility criteria?
To qualify for a grant:

The applicant must be a 'natural person', ie not a company or trust, and at least 18 years of age; and
An applicant (or at least one of the applicants) must be an Australian citizen or permanent resident; and
None of the applicants or applicant's spouse/partner can have previously received the grant; and
None of the applicants or applicant's spouse/partner can have previously owned a home, either jointly or separately, or with another person before 1 July 2000; and
None of the applicants or applicant's spouse/partner can have owned and occupied a residential property either jointly, separately or with some other person on or after 1 July 2000; and
The contract for the purchase or construction of a home must be signed on or after 1 July 2000, or in the case of an owner builder, construction must not have commenced until on or after 1 July 2000.
Applicants must occupy the home purchased or built, as their principal place of residence for a continuous period of 6 months commencing within 12 months of the date of purchase or completion of construction.

Who is NOT eligible?
An applicant does not qualify for a grant if:

They live in Australia on a long term visa (other than New Zealand residents); or
They apply as a company or trust, except where the application is made on behalf of a person with a legal disability.

The purchase of what type of property qualifies an applicant?
The property being purchased or constructed must be done so to be occupied as a residence such as:

A new or established house; or
A home unit; or
A flat or other type of self-contained fixed dwelling; or
Demountable dwellings and re-locatable homes where these meet local planning standards; or
Shared equity arrangements; or
A property used for both residential and commercial purposes.

Note: The property to which the grant applies MUST be used for a continuous period of 6 months commencing within 12 months of completion of the transaction as the "principal place of residence" for the applicant(s).

The purchase of what type of property DOES NOT qualify an applicant?

Land only;
A temporary dwelling; or
An investment property that will not be used as the "principal place of residence" by the applicant(s).

When is the grant paid?
Payment of the grant is dependent on the type of transaction that is being entered into and where the application is lodged.

Lodging via an 'Approved Agent':

For purchase of an existing dwelling payment will be made at settlement; or
For a contract to build, payment will be made on first drawdown of the loan (first progress payment to the builder); or
In the case of an owner-builder payment will be made on production of a Certificate of Occupancy or Completion.

Lodging via Service Tasmania

For purchase of an existing dwelling, payment will be made upon proof of settlement; or
For a contract to build, payment will be made upon production of a Certificate of Occupancy or Completion; or
In the case of an owner builder, payment will be made upon production of a Certificate of Occupancy or Completion.

How is the grant paid?
Payment of the grant will be made by Electronic Funds Transfer into an account nominated by the applicant.

Where can I get more information?
Enquires can be directed to the State Revenue Office on 6233 2927 or by e-mail to fhogs@treasury.tas.gov.au

I am not married, however I live with my partner. How is our relationship viewed for FHOG purposes?
A couple in this circumstance would most likely be treated the same as a legally married couple. A person is regarded as being a spouse of another person if they are legally married or are cohabiting together on a genuine domestic basis in a significant relationship, as defined in the Relationships Act 2003.

My spouse has previously owned a home. Am I eligible?
No, you do not meet the eligibility criteria. The criteria states that neither the applicant or applicant's spouse can have previously held an interest in a residential property within Tasmania or another State or Territory prior to 1 July 2000 and never owned and occupied a residential property on or after I July 2000.

My spouse has previously owned a home. If I purchase a home independently of my spouse, sign it wholly in my name and make all the repayments myself, am I eligible?
No, the eligibility criteria will not be met. The criteria states that neither the applicant or applicant's spouse can have previously had an interest in a residential property within Tasmania or another State or Territory prior to 1 July 2000, and never owned and occupied a residential property on or after 1 July 2000.

If my partner has previously owned land but not a house, will we be eligible for the grant on the purchase or construction of our first home?
Yes, land is not regarded as a residential property for FHOG purposes.

I have previously owned a home in another state. Will I be eligible for the grant upon the purchase of my first Tasmanian home?
No. The First Home Owner Grant is a national scheme and therefore the grant is only payable for a first home purchased within Australia.

I currently own a shack (since 1993), which I use only on holidays but have not owned a home. Am I eligible for the grant?
No. You have an interest in a property that may be lawfully occupied as a residence or suitable for occupation as a residence.

Before I immigrated to Tasmania I was previously living in England where I was purchasing my own home. I am now an Australian citizen. Do I qualify for the grant upon the purchase of my first Tasmanian home?
Yes, the rule regarding previous home ownership only applies to homes within Australia.

I am a New Zealand citizen but have been living in Australia for 10 years. I have not applied for permanent residency status. Am I eligible for the grant?
Yes. New Zealand citizens do not require Australian citizenship or permanent residency to be eligible for the grant. NOTE: This only applies to New Zealand citizens with a valid visa status.

Do I get the grant if I purchase vacant land?
No, the grant will be paid when you either purchase an established home or build on the land. The purchase of land will not affect your eligibility for the grant.

Do I get the grant if I previously owned a business premise?
Yes, unless the property was used jointly as residential/ business.

Does the fact that I sell a property to a close relative affect their eligibility to the grant?
No, the grant will be payable as long as the purchaser meets all required eligibility criteria and the payment of the property consideration amount can be confirmed.

To secure finance for my home my parents were required to go guarantor for the mortgage. They are not included on the title. Am I eligible for the grant?
Yes, you will qualify as the applicant if you meet all the other eligibility criteria.

To secure finance for my home, my parents were required to be listed on the title for the property. They already own their own home. Am I eligible for the grant?
Yes, providing your parents have:

no more than a 5% interest in the property;
only been included on the title for security purposes;
no other beneficial interest in the property; and
will not be making mortgage repayments.

My parents have provided some money towards the purchase of my new home. Am I still eligible for the grant?
Yes, as long as your parents either provided the money as a gift or as an arms length loan and they do not have any other beneficial interest in the property. Both you and your parents will need to provide statutory declarations stating the circumstances under which they provided you with the money.

Do I qualify for the grant if I receive a property as the result of a gift or inheritance?
No. To meet the eligibility criteria, there must have been an eligible transaction, and a gift or inheritance is not an eligible transaction.

I want to purchase a unit as purely an investment property. I do not have any intention of living in it. Am I eligible for the grant upon purchase of this unit?
No. To meet the eligibility criteria you must occupy the property in question as your "principal place of residence" for a continuous period of 6 months commencing within the first 12 months after completion of the transaction.

I am a beneficiary of a trust that holds property. Am I eligible for the grant?
The beneficiary of a trust that holds property (residential, and/or commercial) would not be disqualified from receiving the grant regardless of whether it is a fixed or discretionary trust providing they meet the eligibility criteria.

In the case of multiple applicants is every party required to move into the property purchased?
Yes, the eligibility criteria states that an applicant must occupy the relevant home for a continuous period of 6 months commencing within 12 months as their "principal place of residence". In the case of multiple applicants the Commissioner has the power to exempt additional applicants if at least one meets the principal place of residence requirement, and there is a good reason that the other applicants will not meet this requirement. This will be assessed on a case by case basis upon an application in writing from the applicants who will not meet this requirement.

Is there a time limit placed on how long I have to occupy the property as my principal place of residence?
Yes, the applicant(s) must occupy the house for a continuous period of 6 months commencing within 12 months from settlement or completion of construction. Proof of moving into the home may be requested by the State Revenue Office.

Upon purchasing my new house, I have decided to rent it out for 6 months and then move in. Do I still qualify for the grant?
Yes, providing the property becomes your principal place of residence within the first 12 months of purchase.

I am currently renting a unit. My rental contract expired on 30 June 2005. If I purchase the property on 1 July 2005, do I qualify for the grant even though I have lived here for some time as a tenant?
Yes, the fact that you were previously renting the property does not make you ineligible for the grant.

Can I use my $7 000 as a deposit before I sign the contract of sale?
No, the grant is paid on settlement. This means that the $7 000 isn't paid until you take possession of the house. If it is a new house being constructed, then the grant is payable when it is completed for occupancy.

Are there any limits on the price I pay for a property?
No, there are no limits. However, the maximum grant you can receive is the lesser of the purchase price or $7 000.

If I purchase a house and receive the $7 000 grant, but sell it 8 months later, do I have to refund the grant amount?
No, provided you have been living in the house as your principal place of residence for a continuous period of 6 months.

If I am unemployed or on a pension am I still entitled to the grant?
Yes, providing you meet the criteria. Personal income is not part of the eligibility criteria.

Do I have to have an established savings plan to qualify for the grant?
No, an established savings plan is not part of the eligibility criteria for the grant, however it may be for a lending institution to enable you to obtain finance.

Is the grant means tested on income or assets?
No, the grant is not means tested.

Can a cash buyer qualify for the grant?
Yes

Am I required to use the grant for a specific purpose such as reducing any mortgage?
No, the money can be used at the applicant's discretion. This may include reducing debt, paying duty or buying an asset such as a car or boat.

Will there be sufficient funds for all eligible applicants?
Yes, all eligible applicants are guaranteed of receiving their grant in a timely manner for as long as the First Home Owner Grant Act 2000 exists.

Do I need to register for the grant?
No, there is no register. Applications are accepted by Approved Agents and Service Tasmania shops (acting on behalf of the State Revenue Office).

How much paperwork will I be required to complete?
An application form is required. Applicants need to prove their identity and that they are Australian citizens or permanent residents. Applicants must also provide documentation relating to the transaction being undertaken. The application form details any supporting documentation required.

Is the legislation uniform Australia wide?
Yes, uniform legislation has been passed in each State and Territory. Administration and application forms vary slightly from state to state.

Will an applicant be expected to pay back the grant if they are found not to have met the eligibility criteria?
Yes. In addition, substantial penalties may be applied if it is found that the applicant acted dishonestly.

From 2 May 2008, a court may impose fines of up to:

$15 000 where an applicant, giving any information under the Act, dishonestly makes a statement that is false or misleading, omits any matter from a statement that makes a statement false or misleading or provides a document that is false or misleading; or
$10 000 where an applicant, in giving any information under the Act, intentionally or negligently makes a statement that is false or misleading, omits any matter from a statement that makes a statement false or misleading or provides a document that is false or misleading.

Prior to this date, a court was able to impose fines of up to $10 000 where a person made a false or misleading statement in or in connection with a grant application irrespective of whether the statement was made dishonestly.

Additionally, where an applicant acts dishonestly the Commissioner may seek repayment of the $7 000 grant plus impose an administrative penalty of up to $7 000.

I have purchased a block of land that I will be building a house on. Does this qualify me for the grant?
No. Purchase of land does not qualify an applicant for the grant until they enter into a comprehensive building contract or commence building as an owner-builder.