Grants in Your State
Every state in Australia has incentives aimed at making it easier for first home buyers to buy their first home. It is important that first home buyers can access the market to buy their own home, as growth in the housing industry is the foundation stone for a government succeeding on the economic front. This was never borne out more dramatically when, during the economic slowdown in 2008-9 as a result of the Global Financial Crisis (GFC), the Australian Government doubled the first home owner grant money to $14,000 for first home buyers buying their first home and tripling it to $21,000 for those building their first home. This along with the Reserve Bank of Australia (RBA) dropping interest rates to historically low levels, saw a major surge in the number of first home buyers entering the market that resulting in the building industry emerging from the crisis basically unscathed. The grant has since reverted back to $7,000 and interest rates have returned to more normal levels to avoid the ravages of inflation.
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- You will be assigned a persona home loan manager who knows your local area.
- Mortgage brokers are also experienced and qualified to help you apply for the full First Home Owners Grant you are entitled to.
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Although the first home owner grant is funded by the Australian Government it is administered by the various state and territory Revenue Offices. The various states all have their own incentives that supplement the first home owner grant, some of these give grants of their own and others either waive or give substantial concessions off the cost of stamp duty. The differences in each state is outlined below:
New South Wales, as do all the other states, administers the first home owner grant for the Australian Government and grants a tax free amount of $7,000 to all eligible first home buyers buying a home in that state as a once only lump sum payment. This grant is payable on all properties being purchased by a first home buyer up to a value of $750,000. The NSW government also offer an additional First Home Plus Scheme that assists first home buyers buying property up to a value of $600,000. With this scheme first home buyers purchasing a property valued at no more than $500,000 are exempt from paying stamp duty. If the property is valued between $500,000 and $600,000 there is only a concessional amount of stamp duty to be paid. This means the Home Plus Scheme will deliver a savings of $13,490 on a property valued at $400,000. This amount along with the $7,000 first home owner grant is a considerable amount of government assistance.
Victoria was probably the state that emerged from the GFC the best of all the other states. This was partly due to its First Home Owner Grant and its First Home Bonus program. The Victorian First Home Bonus grants an amount of $13,000 to first home buyers purchasing an established property valued at no more than $600,000 and $19,500 if the first home buyer is building a new home. There is also a generous stamp duty concession scheme for families with dependent children. You must choose one or the other however, as if you claim the First Home Bonus you will not be able to claim the stamp duty concession and vice versa.
Queensland supplements the First Home Owner Grant with an additional $4,000 if the eligible first home buyer is building a new home in a regional area. First home buyers here are also exempt from having to pay stamp duty on all properties up to a value of $500,000. From there, there is a partial rebate on stamp duty up to a property value of $600,000.
Western Australia first home buyers, buying their first property north of the 26th parallel, can access the First Home Owner Grant of $7,000 on properties valued up to $1,000,000. Those in other parts of the state are limited to a property valued at no more than $750,000. First home buyers here can also benefit from a First Home Owner Rate program that offers concessions off stamp duty costs. On properties valued at no more than $500,000 there is no stamp duty to pay at all. A concessional rate is payable on properties valued from $500,000 to $600,000.
South Australia first home buyers enjoy a First Home Bonus Grant on properties valued under $575,000, over and above the First Home Owner Grant of $7,000 on properties valued up to $750,000. There is also a one off grant of up to $8,000 when building or buying a new home.
Tasmania offers a Duty Concession on top of the First Home Owner Grant. A concession of $4,000 is allowed off stamp duty on properties valued up to $350,000. First home buyers wishing to buy a block of land to build on can receive a concession of $2,400 off stamp duty costs on land valued up to $175,000.
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Related posts:
- The NSW First Home Plus Grant Scheme
- New Home Buyers Fact Sheet & Frequently Asked Questions (NSW)
- Check State Rules for First Home Grants
- First Home Buyers Grant New South Wales (NSW)
- First Home Plus One NSW
- Eligibility for first home buyers grant
- Stamp Duty Calculator QLD
- Stamp Duty Exemptions and Rebates
- Stamp Duty Concession
- Federal Government First Home Owners Grant
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