First Home Bonus Grant (of up to $8000)

What changes have been made to the First Home Bonus Grant of up to $8000?

As part of the State Budget 2011 handed down on 9 June 2011, the Treasurer announced that the First Home Bonus Grant (FHBG ) of up to $8000 will reduce to up to $4000 from 1 July 2012 and will be fully abolished from 1 July 2013. Further, commencement and/or completion conditions for the building of a new home apply for an eligible transaction entered into on or after 10 June 2011.

What is the First Home Bonus Grant of up to $8000?

As part of the State Budget 2010 handed down on 16 September 2010, the Treasurer announced the introduction of a First Home Bonus Grant of up to $8000 for first home buyers who enter into a contract to purchase or build a New Home on or after 17 September 2010, or commence construction as an owner builder on or after 17 September 2010.
New Home means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home.

Who is eligible to receive the First Home Bonus Grant of up to $8000?

The FHBG of up to $8000 is an additional payment for first home buyers who qualify to receive a First Home Owner Grant of $7000 where the market value of the property is less than $450,000.

The amount of the FHBG will be determined by the market value of the property which:

in the case of a contract for the purchase of a new home is the consideration for the purchase of the home, or, where that consideration is less than the market value, then the market value of the property;
in the case of a comprehensive building contract is the sum of the consideration for the building contract and the market value of the property on which the home is to be built as at the time when the contract is made, or, where the consideration for the building contract is less than the actual costs, the sum of the actual costs to build the home and the market value of the property on which the home is to be built as at the time the building contract is made;
in the case of an owner builder is the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.

Note: In the case of a farming property the market value of the property will be determined on the value of the home and curtilage area or that part of the land that is to constitute the site and curtilage of a home that is to be built on that site.

To determine the amount of the FHBG that you may be eligible for, go to the First Home Bonus calculator on our website.

What commencement and/or completion conditions apply?

For an eligible transaction entered into on or after 10 June 2011, the following commencement and/or completion conditions for the building of a new home apply:

in the case of a contract for the purchase of a new home, that is an “off-the-plan” purchase, with a commencement date that is on or after 10 June 2011 and before 1 July 2012 - the contract must state that the new home will be completed on or before 31 December 2013, or otherwise the home is actually completed on or before that date.

The commencement date for an “off-the-plan” purchase of a new home is the date when the contract is made, whilst the completion date is the date (i) the purchaser becomes entitled to possession of the home under the contract and (ii) if the purchaser is to obtain a registered title to the land on which the home is situated - the date the necessary steps to obtain registration of the purchaser's title have been taken.

in the case of a comprehensive building contract – laying of the foundations must commence within 26 weeks after the contract is made and the contract must specify a completion date for building work within 18 months of the laying of the foundations or otherwise construction must be completed within 18 months after the laying of the foundations. The completion date is the date the building is ready for occupation as a place of residence.

in the case of an owner builder - construction of the home must be completed within 18 months after its commencement date. The commencement date is the date when laying of the foundations commences or another date the Commissioner of State Taxation (the “Commissioner”) considers appropriate in the circumstances of the case, whilst the completion date is the date the building is ready for occupation as a place of residence.

Note 1: the Commissioner has discretion to allow a longer period for either the commencement of and/or the completion of the building of a home. See Information Circular No 23 for further details.

Note 2: in the case of a contract for the purchase of a new home that is not to be built, (eg. an ex-display home or a completed home sold by the builder) no commencement and/or completion conditions apply.

How much is the First Home Bonus Grant?

A FHBG of $8000 is available until 30 June 2012 for first home purchases with a market value of up to $400,000 and phases out for property with market values between $400,000 and $450,000 by $16 for every $100 in excess of $400,000.

The FHBG is in addition to the $7000 First Home Owner Grant.

How do I apply ?

You need to complete an Addendum to the First Home Owner Grant Application Form to claim the First Home Bonus Grant for New Homes (the “Addendum”) and this must be lodged with the First Home Owner Grant Application (the “Application”). The Addendum and the Application can be lodged with RevenueSA or with an Approved Agent if you are borrowing funds from the agent, as part of buying or building your new home.

When will the FHBG of up to $8000 be paid?

The Addendum to claim the FHBG of up to $8000 will be processed with the Application and in most cases will be paid as one total payment. In some instances this payment may be made after the First Home Owner Grant of $7000 has been paid.

Where do I obtain the form to claim the FHBG of up to $8000?

The Addendum may be obtained from an Approved Agent, in person from RevenueSA, or downloaded here.

More Information ?

Please direct any enquiries to:

Telephone (08) 8226 3750 or Free Call 1800 637 778 or fhog.support@sa.gov.au

This page was last reviewed 17 February, 2012