Overview

To offset the impact of the introduction of the goods and services tax (GST), the Commonwealth, States and Territories agreed to implement arrangements to assist first home buyers through the establishment of the First Home Owner Grant (FHOG) scheme.

The FHOG scheme commenced on 1 July 2000. Each State and Territory Revenue Office is responsible for administration of the grant in their respective jurisdiction.

The broad principles of the grant are:

• Eligible applicants will be entitled to a one-off payment of up to $7 000 (however, see note).
• Eligible applicants must be natural persons and at least 18 years of age, who are Australian citizens or permanent residents, who are buying or building their first home in Australia.
• To qualify for assistance, neither the applicant nor their spouse (or partner) can have owned a home prior to 1 July 2000, either jointly, separately or with some other person, or purchased a home on or after 1 July 2000 and occupied that home.
• Entering into a building contract or commencement of building, in the case of owner-builders, must have occurred on or after 1 July 2000.
• An eligible home will be located in Australia and will be a new or established house, home unit, flat or other type of self contained fixed dwelling that meets local planning standards.
• An eligible home must be intended to be a principal place of residence and occupied for a continuous period of 6 months commencing within 12 months of completion of the transaction (settlement or completion of construction).
• Assistance is not means tested.
• Joint applicants will be restricted to a single application for a single property and only one grant will be made.

• qualify for the First Home Owner Grant:
• have entered into a contract to buy or build a home on or after
  14 October 2008 and on or before 30 September 2009.
• ensure that construction commences with 26 weeks of the date of the contract, when building a new home. The contract must specify a completion date for building work within 18 months of construction commencing or construction must be completed within 18 months of the construction commencing.
• ensure that ‘off the plan’ agreements for sale specify a contract completion date on or before 31 December 2010 for contracts signed between 14 October 2008 and 30 June 2009. For contracts signed between 1 July 2009 and 30 September 2009 the ‘off the plan’ agreement for sale must specify a contract completion date on or before 31 March 2011.
• ensure that construction (ie laying of the foundations) has commenced on or after 14 October 2008 and on or before
  30 September 2009 if the applicant is an owner/builder. Construction must be completed within 18 months of commencement.

• qualify for the First Home Owner Grant:
• have entered into a contract to buy or build a home on or after
  1 October 2009 and on or before 31 December 2009.
• ensure that construction commences with 26 weeks of the date of the contract, when building a new home. The contract must specify a completion date for building work within 18 months of construction commencing or construction must be completed within 18 months of the construction commencing.
• ensure that ‘off the plan’ agreements for sale specify a contract completion date on or before 30 June 2011.
• ensure that construction (ie laying of the foundations) has commenced on or after
  1 October 2009 and on or before 31 December 2009 if the applicant is an owner/builder. Construction must be completed within 18 months of commencement.