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23 March 2021

Turn your dreams into reality with help from the First Homeowner grant

Applying for a first homeowner grant? Here’s everything you need to know.
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As a first-time homeowner, you should explore a number of state funding schemes towards building and buying a new home. You might be eligible for some of these grants! These will push you closer to obtaining the Great Australian Dream ⸺ a home of your own. Here, we look at the most sought-after program of all: the First Home Owner Grant

The First Home Owner Grant (FHOG) explained

The FHOG is a one-off government payment introduced back in the 2000s and is designed to offset the effect of Good and Services Tax (GST) on homeownership. This encourages and assists Australians who just purchased a new-build property, or who are building their home for the very first time ⸺ provided that they satisfy all the eligibility criteria.

Wondering if you are eligible for the FHOG? We’ll show you the requirements next:

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Image credit: Knotwood AU

Eligibility criteria for the FHOG

The FHOG is a national scheme that’s funded and administered by the states and territories, meaning the amount that you will receive will depend on what state or territory you want to buy in, how much you are going to spend, and if you already have a property where you plan to build.

There are different requirements in each state or territory, which we will explain later. Meanwhile, here are the general requirements for you to be eligible for the First Home Owner Grant:

You must be:

  • 18 years old and above
  • An Australian citizen or permanent resident
  • Must be an individual, not a company or trust 
  • Has never owned a home before (a first-time homeowner)
  • If applying with a partner, your partner must’ve not claimed the FHOG before
  • The property needs to be owned and occupied by you and your family for at least 12 months after purchase

The property should be:

  • A newly built home that hasn’t previously been lived in or sold before
  • A newly built home at your property
  • A home that has been substantially renovated, meaning a significant part of the structure should be demolished and rebuilt
new home builders grant, new home builders
Image credit: Knotwood AU

Applying for FHOG in every state

As mentioned above, you will encounter very different requirements and receive very different amounts in every state and territory. 

Here’s a preview of what you could receive:

  • The FHOG is $20,000 max for a new home in the regional areas and $10,000 max for a new home in Melbourne/Metropolitan VIC.
  • Property must cost $750,000

Stamp duty concessions 

  • Stamp duty exemptions for homes below $600,000 
  • Concession is available for homes valued $600,001 to $750,000

Head to the VIC website for more information.

  • The FHOG is $10,000 max provided that you are building a new home valued $750,000 or buying a new home valued $600,000

Head to the NSW website for more information

Stamp duty concessions: 

  • New homes worth less than $800,000 and existing homes worth less than $650,000 are exempted from the transfer of duty. 
  • New homes valued at $800,000 to $1,000,000 and existing homes values $650,000 to $800,000 have access to stamp duty concessions. 
  • No transfer of duties applies when the vacant land where you will build a new home is valued less than $400,000.
  • Concessions rates apply when land value is between $400,000 and $500,000.
  • The FHOG is $20,000 max
  • Applicants must complete the construction of their home within 24 months to remain eligible for the grant
  • There is no limit on the price of the property

Head to the TAS website to read full details

Stamp duty concessions

  • Get 50% discount on stamp duty when the property is worth up to $400,000
  • The FHOG has been cut to $15,000 max
  • The property must be valued under $750,000
  • You must move into the new house within one year after purchase or construction, then be an owner-occupier continuously for six months ⸺ or you will pay back the grant

Read more about additional eligibility criteria here

Stamp duty concessions

  • Homes worth $550,000 and up or vacant land valued at up to $400,000 are eligible for transfer duty exemptions
  • The FHOG is $15,000 max
  • The property value must be $575,000

Read more about additional eligibility criteria here

Stamp duty concessions

  • No stamp duty concessions for first-time buyers, but there is an off-the-plan stamp duty exemption for new or substantially refurbished apartments worth up to $500,000
  • The FHOG is $10,000 max
  • Properties must have a combined home and land value of $750,000
  • Substantial renovations must be valued more than $1,500,000

Additional eligibility criteria applies, check it here.

Stamp duty concessions

  • Get up to $18,601 of Territory Home Owner Discount (THOD) on stamp duty costs
  • The FHOG is $10,000 max and the requirement varies depending on the location of your new purchase or build in WA
    • Property must be $750,000 if located in the south of the 26th latitude; Perth included
    • Property must be $1,000,000 if located in the north of the 26th latitude

Head to the WA website for more information

Stamp duty concessions

  • Transfer duty exemptions and concessions apply for homes less than $530,000 and vacant land less than $400,000
  • Here, the FHOG has been replaced by the Home Buyer Concession Scheme, which provides a full stamp duty concession for eligible applicants. For more information, head to the ACT website
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Turn your dreams into reality with help from the First Home Owners Grant

Saving for your first home nowadays may be challenging, especially due to the skyrocketing prices of real estate and the costs of building and renovating homes. 

However, you can always take advantage of grants and rebates offered by the government, plus the financial incentives given in the state and territory where you live. The First Homeowners Grant is one of them. 

Apart from the FHOG, you should also look into the First Home Loan Deposit Scheme (FHLDS), First Home Super Saver Scheme (FHSS), and the HomeBuilder Grant.

Take advantage of these new home builder offers because you can use these in conjunction with other state and territory grants as well.

These grants will push you closer to your dream of owning your home ⸺ the Great Australian Dream.

Find more articles, guides and inspiration in the planning dashboard. Save them to your dream board, and start planning your dream space today.

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