Eligibility for first home buyers grant

First home buyers grants

Incentives for first home buyer were introduced by the Australian federal government in 2000 to reduce the impact of the Goods and Services Tax on home ownership.  Some of the main features of the scheme are:

• The First Home Owner Grant is a contribution of $7000 by the government.  Under the scheme eligible applicants receive a tax-free grant towards buying or building their first home. The national first home buyer incentive scheme is funded and administered by the individual states and territories in Australia. 
• You must satisfy all of the eligibility criteria to qualify for the grant.  The main requirements for eligibility are:  you must be an Australian citizen or a permanent resident of Australia, you must be buying or building your first home in Australia, and you must have the intention of living in the home as your primary residence within 12 months of settlement.  If you are buying your first home jointly with another person, both of you must meet all of the eligibility requirements to receive the grant.  Although the First Home Owner Grant Scheme is a federal initiative each state or territory has its own criteria for eligibility.
• First Home Saver accounts can increase your savings for your first home.  The federal government provides government contributions and tax concessions to boost the savings in First Home Saver accounts.  For savings up to $5000 a year the government’s co-contribution is 17% (that is, up to a maximum of $850per year), and tax on interest earned in a First Home Saver account is at a concessionary rate of 15%.  The savings in First Home Saver accounts must be contributed over at least four financial years because the initiative is intended to encourage good long-term savings habits.

First home buyer incentives in Australian states and territories

Each state and territory in Australia has its own local rules for grants, concessions and exemptions available to first home buyers.   Like the national First Home Owners Grant, initiatives are designed to help buyers when they first enter the property market. In some states grants are directed towards the purchase of newly constructed homes as a stimulus for the local building industry. The following examples show how some of the benefits are applied in different jurisdictions:

• A New Home Buyers Supplement of $3000 is available in New South Wales.  First homebuyers may also qualify for concessions on state stamp duty.  First home buyers in New South Wales who buy properties valued at more than $750,000 do not qualify for either the federal First Home Owners Grant or the state New Home Buyers Supplement.
• In Western Australia there is a cap on the value of first home purchases.  To be eligible for the First Home Buyer Grant buyers in Western Australia must be buying or building a property with a value lower than a threshold of $750,000, or $1,000,000 if the property is located north of the 26^th parallel.
• The South Australian government grants a First Home Bonus. To be eligible for the full First Home Bonus of $4,000, the value of the property must not exceed $400,000; for properties valued between $400,001 and $450,000 the bonus is calculated on a sliding scale.

These examples show how the rules on eligibility for First Home Buyer Grants and other benefits are applied in different Australian states. 

Related posts:

1. First Home Buyers Grant New South Wales (NSW)
2. First Home Buyers Grant South Australia
3. Federal Government First Home Owners Grant
4. First Home Buyers Grant Northern Territory (NT)
5. First Home Buyers Grant Queensland (QLD)
6. First Home Owners Grant Eligibility requirements NSW
7. First Home Buyers Grant Tasmania (TAS)
8. First Home Buyers Grant WA
9. First Home Owners Grant FAQ
10. Eligibility Criteria First Home Owner Grant (NT)

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