FAQ – FHOG General Information (WA)
THE First Home Owners Grant (FHOG) was first established by the Australian Government on July 1, 2000 to counteract any adverse effect the introduction of the Goods and Services Tax (GST) may have on first home buyers. The First Home Owners Grant, that pays an amount of $7,000 to all eligible applicants buying or building their first home, is administered by the various state and territory governments. If you are considering buying or building your first home in WA, you may have a few questions, which can be answered below, or by contacting Home Loan Finder now.
FHOG General Information (WA)
Who is eligible for the FHOG in WA?
- The contract to buy or build or in the case of an owner builder, the commencement of building must occur prior to July 1, 2000.
- All applicants must have a financial interest in the property on which the home is situated.
- At least one of the applicants, if more than one, must actually reside in the home as his or her main place of living for a continuous period of six months, within 12 months of settlement, or completion, whichever is relevant.
- Neither the applicant nor his or her spouse can have owned a house previously anywhere in Australia after July 1, 2000 and occupied that home for six continuous months from June 30, 2004.
- Neither could they have occupied the home prior to June 30, 2004.
- Neither the applicant nor his or her spouse can have owned a house anywhere in Australia before July 1, 2000.
- No applicant can have previously been a recipient of the FHOG anywhere in Australia.
- At least one applicant to be an Australian citizen or a permanent resident at the time of settlement or beginning of construction.
- All applicants must be a ‘natural’ person, not a company or trust at the time of settlement although some trusts can be eligible under certain conditions.
- Applicants must be 18 years of age at the time of settlement or at the beginning of construction if the home is being built as in the case of an owner builder.
Can multiple eligible applicants qualify for a grant each?
No. Only one grant is allowed for the one home.
Will this grant effect my eligibility to receive other grants or assistance?
No. In Western Australia you may still receive the full benefits of the following:
- Keystart First Home buyer Scheme
- Aboriginal Home Ownership Scheme
- Access Home Loan Scheme
- Goodstart Scheme
- Right to Buy Scheme
- Home Buyer Assistant Fund
- First Home Buyer Stamp Duty rebate.
What constitutes home?
A home is regarded as being a building fixed to the land that can be lawfully used as a place of living.
What type of homes qualify?
Those used as a place of residence. An established home or a new home which includes:
- flat
- unit
- town house
- villa
- house
- Must be designed as a place of residence and comply with all local authority standards.
- Used as a principal place of residence.
- Be located in Western Australia.
Can a renovated house be eligible?
No.
How much is paid by the grant?
$7000 or the consideration cost to either buy or build the home if less. (if you buy/build a home for $5000 your Grant will be $5,000.
What is meant by consideration?
- The amount paid for the home.
- If building it means the total amount paid for the building work.
- If an owner builder it means the costs to the owner, NOT his or her own labour costs.
If I paid cash for my home am I eligible?
- Yes. As long as you meet all the other requirements. The grant is not means tested nor does it require the applicant to have obtained finance.
- Is there a ‘cap’ on what value the home can not exceed?
- Yes. There is a cap that took effect from January 1, 2010 for all applicants either buying or building. For a home south of the 26th parallel $750,000 and for a home north of the 26th parallel $1,000,000.
Can I operate a business from the home if I have received the grant?
Yes.
What if my situation changes?
- You must advise the Commissioner in writing within 30 days of the expiration of a 12 months period of residing in the home or when you became aware that you could not fulfil all that was required of you, whichever happens first.
- The Commissioner will determine if you have to return the grant money or otherwise.
- If you fail to notify the Commissioner of your changed circumstance you will be required to repay the grant along with any other penalties and you will be ineligible to apply for any future grant.
- The Commissioner has the authority to begin an investigation into any application for the First Home Owners Grant.
If you have any other questions which weren’t answered here, contact Home Loan Finder now, and we can also help you understand how the conditions above relate to your situation.
Related posts:
- First Home Owner Boost Overview (VIC)
- Eligibility Criteria First Home Owner Grant (NT)
- Frequently Asked Questions: First Home Owner Grant
- First Home Owner Boost Information (ACT)
- First Home Owners Grant (WA)
- First Home Owners Grant (ACT)
- First Home Owners Grant FAQ NSW
- Apply for FHOG and FHOB (TAS)
- First Home Buyers Grant Queensland (QLD)
- FHOG Definitions (VIC)
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