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Description

This video will help explain the eligibility criteria for claiming the First Home Owner Grant (FHOG)

Transcript

Searching for and buying your perfect first home is an exciting time. Congratulations for taking the first steps toward it!

Now that you are in the market for your first home, you may have heard about the First Home Owner Grant and duty concessions available from the Victorian Government to help you on your way with this important step in your life. We would like to help you understand what’s on offer, and provide some important information about eligibility for these initiatives.

As a first-home buyer, you may be eligible for a first-home owner grant of $10,000.This grant is available for eligible first-home buyers who enter a contract to build, or buy a new home.

Further, you may get a reduction of the amount of stamp duty you have to pay because you are an eligible first-home buyer. Depending on the value of your new home, a full exemption, or reduced rate of duty can apply, as long as certain residency requirements and other eligibility criteria are met.

How much is the grant?

The current First Home Owner Grant is $10,000. This amount is payable to eligible applicants who purchase or construct a brand new home. (flash up on screen *for contracts entered into after 1 July 2013.) In any case, the purchase price or cost of construction can’t exceed $750,000.

What are “eligible applicants?”

It’s important to clarify that an applicant is anyone who will be on title as an owner of the home. Each application must satisfy all five eligibility criteria for the grant.

Before we get into the five eligibility criteria, it’s important we think about whether an applicant has a spouse or partner. This is important because if an applicant for the grant has a spouse or partner, then the spouse or partner will also have to satisfy some requirements as part of the application.

Does the legislation define what a spouse or partner is?

The legislation defines spouse and partner.  A spouse is someone to whom you are legally married. A partner is someone with whom you live in a genuine domestic relationship.

For the applicant to be eligible, the applicant’s spouse or partner can’t have received a grant before, in any state or territory of Australia and can’t have owned any residential property at all before 1 July 2000.

What are the eligibility criteria?

There are five eligibility criteria that an application must satisfy for an applicant to be eligible for the first home owner grant.

As with an applicant’s spouse or partner, no applicant can have previously received a grant in any state or territory of Australia.

Secondly, the applicant, or their spouse or partner must not have owned residential property, whether on their own or with some other person before 1 July 2000.

Ordinarily an applicant must be a natural person aged at least 18 years at the time of settlement or completion of construction. Further, at least one applicant must also be a permanent resident, an Australian citizen or a New Zealand citizen holding a special category. There is also an important residency requirement that must be satisfied. 

To be eligible for the grant, the property purchased must be occupied as a home for a continuous period of at least 12 months, within 12 months* (flash up on screen *for contracts entered after 1 July 2013) of completion of the eligible transaction, being settlement of the purchase of the home or completion of construction of the home.

How do I apply?

In most cases, the lender will assist applicants with their application. Alternatively, you can apply directly to the SRO by lodging a completed application form which you can obtain from our website at sro.vic.gov.au.

The First Home Owner Grant. PPR concession. Duty reduction for first-home buyers, and first-home owner with family exemption or concession. Helping you make the dream of your first home a reality.

For more information on any of these schemes, visit our website at sro.vic.gov.au, or don’t hesitate to contact the SRO on 13 21 61.