• About the First Home Owner Grant

     

    The First Home Owner Grant (FHOG) Scheme

    The FHOG is a one-off payment to encourage and assist first home buyers to buy or build a residential property for use as their principal place of residence. For more information refer to the First Home Owner Grant Fact Sheet.

    On 27 December 2016, the Government announced a temporary $5,000 boost to the FHOG. On 17 May 2017, the Government announced a change to the closing date for the $5,000 FHOG boost payment. Eligibility for the boost payment will now cease on 30 June 2017 instead of 31 December 2017. The boost payment is available to eligible first home buyers who enter into a contract between 1 January and 30 June 2017 to purchase or construct a new home, and owner builders who commence laying foundations of their home between those dates.

    First home owners may qualify for the grant and/or the first home owner rate of duty if they are either purchasing an established home or if they are building or purchasing a new home. The grant has:

    • geographically determined caps on the total value of the home;
    • residence requirements; and
    • eligibility criteria for applicants.

    When a person is eligible, or would have been eligible, for the first home owner grant, a concessional first home owner rate of duty will apply if the value of the dutiable property is below certain thresholds.

    Find detailed information in the FHOG Guide.

    The video below provides a brief summary of the first home owner grant in Western Australia.

       
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    Cap on the value of the home

    The value of your transaction may affect your eligibility for the FHOG as there is a cap on the total value of the home and land. The cap amount varies depending on where the home is located:

    Property location Value of land and building
    South of the 26th parallel    $750,000
    North of the 26th parallel $1,000,000

    The 26th parallel (south) is a circle of latitude that is 26° south of the equator. All Perth metropolitan areas are south of the 26th parallel. For example:

    • the Town of Kalbarri is south of the 26th parallel; and
    • the Town of Denham is north of the 26th parallel.

    The total value of a transaction can be determined by applying the following:

    • Established, New Home or Off the Plan – the greater of the consideration for the contract to purchase, or the unencumbered value.
    • Contract to build – the total of the consideration for the contract to build, and the unencumbered value of the land.
    • Owner builder – the unencumbered value, at the date the transaction is completed, of the home (i.e. total value of the home and land).

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    Eligibility requirements for the grant

    To be eligible for the FHOG and/or first home owner rate of duty, applicants must satisfy the following criteria:

    • An applicant must be a natural person (i.e. not a company) and be 18 years or over at the time of making application. However, you may be able to apply for an exemption from the age requirement.
    • At least one applicant must be an Australian citizen or a permanent resident at the time of making application.
    • Applicants and/or their spouses or de facto partners cannot have previously received the FHOG or first home owner rate of duty from any jurisdiction in Australia.
    • Applicants and/or their spouses or de facto partners cannot have previously owned a home anywhere in Australia prior to 1 July 2000.
    • Applicants and/or their spouses or de facto partners cannot have previously owned a home anywhere in Australia after 1 July 2000 and occupied that home before 30 June 2004.
    • Applicants and/or their spouses or de facto partners cannot have previously owned a home anywhere in Australia after 1 July 2000 and occupied that home for a period of not more than six continuous months commencing after 30 June 2004.
    • Applicants must occupy the home as their principal place of residence for a continuous period of at least six months commencing within 12 months of settlement if purchasing a home, or within 12 months from the date of completion if building a home.
    • Applicants must hold a relevant interest (ownership) in the land on which the home is situated.
    • The applicant must enter into a contract to buy or build (or in case of an owner builder, commence construction) on or after 1 July 2000.

    Eligibility requirements for the $5,000 boost

    Along with the eligibility requirements for the existing $10,000 grant, the following requirements must be met:

    • The contract for the construction or purchase of an eligible new home must be made on or after 1 January 2017 and on or before 30 June 2017.
    • Construction of a new home must have commenced within 26 weeks after the date of the contract and be completed within 18 months of commencing construction.
    • For owner builders, construction must commence on or after 1 January 2017 and on or before 30 June 2017 and be completed by 30 June 2019.
    • For a contract to buy an ‘off the plan’ home, the contract must have been entered into on or after 1 January 2017 and on or before 30 June 2017, and be completed 30 June 2019.

    Complete form F-FHOG6 'First Home Owner Boost: Application for Extension' to apply for an extension to the expected commencement or completion date.

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    Transactions

    An eligible transaction is:

    • for the purchase of a new home - a contract made on or after 1 July 2000;
    • a comprehensive home building contract made on or after 1 July 2000; or
    • in the case of an owner builder, building work on the home that began on or after 1 July 2000.

    The commencement date of an eligible transaction is:

    • for the purchase of a home - the date when the contract is made;
    • for a comprehensive home building contract - the date when the contract is made; or
    • for an owner builder - the date when building commences i.e. when the foundation for the house is laid.

    The completion date of an eligible transaction is:

    • for the purchase of a home - the date when the purchaser becomes entitled to possession of the home. This is usually the date of settlement.
    • for a comprehensive home building contract - the date that the building is ready for occupation as a place of residence. This is usually when the builder hands over the keys to the owner.
    • for an owner builder - the date when the building is ready for occupation as a place of residence.

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    How much is the FHOG?

    New homes

    Transactions entered into between 1 January and 30 June 2017 may be eligible to receive $5,000 boost plus the $10,000 grant or the consideration paid to buy or build the house if less than the grant amount.

    For eligible transactions entered into on or after 25 September 2013 and on or before 31 December 2016, the grant is $10,000 or the consideration paid to buy or build the house if less than the grant amount.

    For eligible transactions entered into between 1 July 2000 and 24 September 2013, the grant was $7,000 or the consideration paid if less than $7,000.

    Established homes

    The grant is no longer available for the purchase of established homes. However, purchasers of established homes will still be able to apply for the first home owner rate of duty if the value of the home is below the current threshold of $530,000.

    For eligible transactions entered into between 25 September 2013 and 2 October 2015, the grant was $3,000 or the consideration paid if less than the grant amount.

    For eligible transactions entered into between 1 July 2000 and 24 September 2013, the grant was $7,000 or the consideration paid if less than $7,000.

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