Buying Your First Home

First Home Owners Grant at a glance The First Home Owner's Grant is a one-off payment of $7,000 to eligible first home buyers in Australia from 1 July 2000.

Who is eligible?

You must satisfy the following criteria to be eligible for a first home owner's grant:

• Applicants must be Australian citizens or permanent residents. For applications by couples, the Australian citizenship or residency criteria need to be met by only one of the applicants.
  
• Applicants must be natural persons (not a trust or a company, but trustees can apply on behalf of people with legal disabilities - such as mentally incapacitated persons).
  
• Applicants must intend to make the home their principal place of residence and occupy it within one year. However, in NSW at least one of the applicants must intend to make the home their principal place of residence and occupy it within one year.
  
• The home must be in the same State or Territory in which the application is made. Therefore if an applicant purchases a home in Queensland, application must be made to the Queensland Office of State Revenue.
  
• Applicants must be buying or building their first home. Applicants must have entered into a binding contract to buy or build a home or, in the case of an owner-builder, have started construction on or after 1 July 2000.
  
• An applicant or spouse must not have previously owned a residential property or applied for this grant. Ownership of an investment property before 1 July 2000 will exclude you from being eligible to participate in the scheme. Whereas ownership of an investment property from 1 July 2000 will not exclude you from being eligible for the grant.
  
• An eligible home includes new and established homes, units, and any other types of self-contained fixed dwellings approved by local councils.

How much is the grant?

The First Home Owner's Grant is a one-off payment of $7,000 to eligible first homebuyers from 1 July 2000.

The grant will not be means tested. Eligible applicants will receive the same amount regardless of the state or territory in which application is made or the value of their home or their personal wealth.

The grant may be offset against statutory levies or charges or both.

Where payment for a home is less than $7,000, the amount of grant available will be restricted to the amount of consideration paid. If no consideration is paid, for example where a home is a gift or bequest, the applicant will not be eligible for the grant.

How do you apply?

Applications for a grant must be made between the time the applicant becomes eligible and one year after the settlement date of the transaction or the date when the property can be occupied. However, the Tax Commissioner has the discretion to extend the period to lodge an application, to allow early applications or authorise the payment of a grant before the applicant becomes eligible.

Application forms should be available from 1 July 2000 from the Office of State Revenue in each state, from their websites, or from approved agents. The applicant must supply supporting documentation, including personal identification and proof of the contract.

If an application is rejected, applicants can appeal against the Commissioner's decision. An appeal must be made within 60 days after the notice of objection was received.

Applications can be made by contacting the following State and Territory Revenue Offices:

This information on the First Home Owner's Grant has been prepared by Hall Chadwick - Chartered Accountants and Business Advisors.

This is only a general guide - not a substitute for professional advice. Ray White Real Estate does not guarantee the accuracy, reliability, or completeness of any information on this page, and will not be liable for any loss or damage suffered as a result of anyone relying on this information. We recommend you obtain advice from your own financial, taxation or legal advisor before entering into financial transactions. This information is as at 28 June 2000.