First Home Owners Boost (WA)
THE First Home Owners Boost (WA) was an additional grant designed to run in conjunction with the First Home Owner Grant (FHOG) to boost activity in the first home buyer sector of the Western Australia housing market. Whereas the FHOG was initiated to ease the effect of the Goods and Services Tax (GST) when it was first introduced the First Home Owners Boost (WA) was initiated to foster improved activity in the housing sector in 2008 – 2009 during a time of economic downturn due to the Global Financial Crisis (GFC) then taking place.
Conditions of the Previous First Home Owners Boost for WA Home Buyers
The First Home Owners Boost (WA) applied to contracts for those buying or building homes from October 14, 2008 through to December 31, 2009. It took effect in two distinct forms:
- For contracts entered into between October 14, 2008 and September 30, 2009 the First Home Owners Boost (WA) paid $7,000 to those purchasing an existing home and $14,000 to those buying or building a new home.
- For contracts entered into between October 1, 2009 and December 31, 2009 the First Home Owners Boost (WA) paid $3,500 for an established home and $7,000 to those buying or building a new home.
Applications were required to have been lodged within 12 months of settlement for an established residence and within 12 months of finishing a house that was being built.
Application for the First Home Owner Boost in WA
There was no need to make a separate application to receive the First Home Owners Boost (WA) if purchasing an established residence. An application for the FHOG of $7,000 in its own right was all that was needed. If building or buying a new home however first home buyers were required to complete an addendum for the First Home Owners Boost (WA) as well as complete the application for the FHOG.
Eligibility requirements were the same for both grants other than the extra information required in the addendum for the First Home Owners Boost (WA) for those building or buying a new home. The First Home Owners Boost (WA) has now been withdrawn and the FHOG once again stands alone but for these other assistance packages still available.
The Australian Government has initiated a First Home Saver Account that encourages first home buyers to save up to $75,000 towards a deposit for their new home. This account attracts substantial taxation benefits:
- Contributions may be made by the account holder or any another person or organization.
- The Government will make additional investments paid directly into the account, after the account holder has lodged his or her tax return and the has submitted the relevant information to the Australian Taxation Office.
- The Government will allocate 17 per cent on the first $5,000 of individual contributions deposited every year.
- This means an account holder investing $5,000 will receive a Government contribution of $850.
- No minimum annual deposit is required to keep the account alive. The account can remain alive for as long as required or until the account holder becomes 65 years of age.
- Contributions will not be liable to tax.
- Interest will be taxed at 15 per cent.
- Withdrawals are tax free.
All other housing assistance programs within Western Australia have been retained such as the Home Buyer Assistance Account that provides first home buyers with a grant of up to $2,000 on purchases of $400,000 or less to help pay for incidentals such as:
- mortgage registration
- solicitor fees
- valuation fees
- loan establishment fees
- mortgage insurance premium
- application lodging fees
- lending fees
- inspection fees
- settlement fees
The Home Buyer Assistance Account is funded from interest paid on Western Australian Real Estate Agents trust accounts.
Contact us to find out more about the First Home Owners Boost (WA) and all of the first home buyer benefits and concessions you are still entitled to, to make your first home purchase easier.
Related posts:
- First Home Owners Boost South Australia
- First Home Owner Boost Information (ACT)
- First Home Owner Boost Overview (VIC)
- First Home Owner Boost Information Sheet (NSW)
- Federal Government First Home Owners Grant
- First Home Owners Grant – When Will The Grant Be Paid? (Vic)
- How to apply for first home owners grant
- First Home Owner Grant – Lodgement Guide and Application Form (ACT)
- First Home Owners Grant – Australian Capital Territory
- First Home Owners Grant (WA)
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