Frequently Asked Questions

The Frequently Asked Questions have been divided into categories to make it easier for you to find the answer you are looking for. Just click on the desired category to view a list of questions and answers.

Overview
Occupying the Home
Owner Builders
Spouses/Domestic Partners
Previous Ownerships
Other

In these Frequently Asked Questions:

FHOG refers to the first home owner grant
Commissioner refers to the Commissioner of State Taxation

Overview

What is FHOG?

The FHOG is a one-off grant payable to eligible first home owners on the:

purchase or construction of a new home; or
purchase of an established home (up to 30 June 2014).

Varying amounts of the FHOG are available, depending on the time the contract was entered into, or in the case of owner builders when construction commenced. The First Home Buyers Grants Table outlines the maximum grant payment available.

Is there a cap for FHOG?

A property market value cap of $575 000 applies to applicants who enter into a contract to purchase or build a home on or after 17 September 2010, or who commence construction as owner builders on or after 17 September 2010.

The market value is:

in the case of a contract for the purchase of a home is the consideration for the purchase of a 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 land 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 land on which the home is to be built as at the time the building contract is made;
in the case of an owner builderis 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.

Why was the FHOG introduced?

The FHOG is a Government initiative introduced to offset the impact of the GST and to provide assistance to people to purchase or build their first home.

Who is eligible to receive the FHOG?

A first home buyer who fulfils the criteria below:

an applicant for the grant must be at least 18 years of age;
at least one of the applicants must be an Australian citizen or have permanent residency in Australia. New Zealand citizens permanently residing in Australia, who hold Special Category Visas, may also apply;
an applicant or their spouse/domestic partner cannot have purchased a property and occupied that property for 6 months or more;
applicants must occupy the home purchased or built, as their principal place of residence for a continuous period of at least 6 months commencing within 12 months after completion of the eligible transaction;
except in cases of legal disability applicants must be natural persons (that is, not a company);
everyone who on completion of the transaction will be an owner of the home is considered an applicant.

What kind of property can I purchase?

Any fixed dwelling that is suitable as a residence, for example, a single dwelling, duplex, flat or townhouse. A FHOG is not available for renovations to an existing building or for the purchase of vacant land.

What can the money be used for?

An applicant can use the money for any legal purpose. There are no requirements as to how the money is to be used provided you are eligible to receive it.

How do I apply?

Applicants can complete and lodge an FHOG Application with either an Approved Agent or RevenueSA.

You can complete and lodge the application form with the financial institution providing your finance as part of buying or building your home, if they are an Approved Agent. You need to apply within twelve months of completing the transaction.

If you are purchasing an existing home you are required to submit your Contract of Sale with your application. If you are building a new home, you are required to submit your Building Contract with your application. If you are an owner builder, you are required to submit with your application a Statutory Declaration which states that the home is completed and ready for occupancy.

The Lodgement Guide outlines other supporting documentation that should accompany your application.

If applying via an Approved Agent, please complete and submit the application and supporting documents directly to the Approved Agent. A complete list of Approved Agents is available here. Alternatively, you can check with your local financial institution to see if they are an Approved Agent.

If applying via RevenueSA, please complete and submit the application with relevant supporting documentation. If you are purchasing an existing home, you must also provide proof of lodgement for registration with the Lands Titles Office. If you are entering into a comprehensive building contract, you must also provide proof of the first progress payment to the builder. You will need to provide proof of identity from each of the four categories. Refer to page two of the Lodgement Guide for the requirements under each category.

When will the Grant be paid?

Type of transaction	Applying through	Payment of grant
Purchase of a new home or an off-the-plan home	Approved Agent	At date of Settlement
Purchase of a new home or an off-the-plan home	RevenueSA	Within five days after approval of the application and when proof of lodgement for registration with the Lands Titles Office is provided (please complete a Confirmation of Settlement form).
Contract to build	Approved Agent	On date of first progress payment by Approved Agent.
Contract to build	RevenueSA	Within five days of lodging the first progress payment invoice with, and approval of the application by, RevenueSA.
Owner builder	Approved Agent	When application with appropriate supporting evidence is provided to the Approved Agent.
Owner builder	RevenueSA	Within five days of RevenueSA approving the application lodged with appropriate supporting evidence.

Occupying the Home

When do I have to move in and for how long?

For eligible transactions entered into on or after 1 January 2005:

Each applicant must live in the home as their principal place of residence for at least six continuous months commencing within 12 months of completion of the eligible transaction;
It is the responsibility of the applicant to satisfy the Commissioner that they have met the residency requirement. Applicants may be required to verify this later by providing documentation supporting their period of occupancy;
Should you not meet the residency requirement, you must contact RevenueSA in writing within 14 days after becoming aware that you will not comply.

If it is an established home, when do I have to occupy?

All applicants must occupy the home for a continuous period of at least six months commencing within 12 months of them being entitled to possession of the home under the contract and have taken the necessary steps to obtain registration.

If I am building a new home through a builder, when do I have to occupy?

You must occupy the home for a continuous period of at least six months commencing within 12 months after the home is ready for occupation.

In the case of multiple applicants, is every party required to move into the property purchased?

Yes. Each applicant must occupy the relevant home as a principal place of residence for a continuous period of at least six months commencing within 12 months after completion of the eligible transaction.

In the case of multiple applicants, the Commissioner has the power to exempt an applicant from the residence requirement if at least one applicant complies and there is a good reason why the other applicants will not meet this requirement. This will be assessed on a case by case basis upon application to RevenueSA, in writing, from the applicant(s) who will not meet this requirement.

What if I rent the home out before I move in?

Providing you occupy the home as your principal place of residence for a continuous period of at least 6 months commencing within 12 months after completion of the eligible transaction, you are still eligible for a FHOG.

Am I eligible if I owned a residential property before 1 July 2000, but rented the property out and never occupied it myself?

No, a person is not eligible if they or their spouse/domestic partner have previously owned a home before 1 July 2000 in Australia, whether they lived in it or not.

I may not have met the residency requirement, what should I do?

If you believe that you may not have met any of the requirements you must advise the Commissioner in writing within 14 days of your circumstances changing. Upon receipt of such written advice, the Commissioner will commence an investigation to determine your eligibility to retain the grant. The Commissioner may vary an applicant's residency requirement if satisfied there are good reasons for doing so.

Owner Builders

Can owner builders apply for the Grant?

Owner builders can apply for a FHOG after the foundations have been laid and must apply within 12 months of the property being ready for occupation. There is no specific timeframe to complete construction of the home. Construction must not have commenced prior to 1 July 2000.

When will the Grant be paid to an owner builder?

Payment to an owner builder will be made following receipt of a Statutory Declaration that states that the home is complete and ready for occupation as a place of residence.

What is considered completion of construction for an owner builder?

Completion of construction is when the home is ready for occupation as a place of residence.

If I am owner builder, when do I have to occupy?

Owner builders must occupy for a continuous period of at least six months commencing within 12 months of the date of completion of construction (ready for occupation).

Spouses/Domestic Partners

My spouse/domestic partner has previously owned a home. Am I eligible?

If your spouse/domestic partner owned a home prior to 1 July 2000, you are not eligible.

If your spouse/domestic partner acquired a home on or after 1 July 2000 and did not occupy that home for a continuous period of six months or longer, you may be eligible. Your spouse/domestic partner must be included on your application.

If I am buying a home in my name only, must my spouse/domestic partner be included on the application form?

Yes. The eligibility criteria applies to both the applicant and the applicant's spouse/domestic partner. If your spouse/domestic partner will/does hold a relevant interest in the home they must complete the applicant component of the application. If not, they must complete the declaration by spouse/domestic partner component of the application.

If I am divorced, and my previous spouse/domestic partner owned a home that I had no interest in, am I eligible for the FHOG?

If you are divorced/separated, you are not required to consider the ownerships of your previous spouse/domestic partner. You will be eligible for a FHOG provided that you meet all eligibility criteria.

If my partner has previously owned vacant land but not a house, will we be eligible for the FHOG on the purchase or construction of our first home?

Yes, vacant land is not regarded as residential property for FHOG purposes.

What is considered to be a Domestic Partnership?

A person is the domestic partner of another if they live together in a close personal relationship.

A close personal relationship is defined to mean the relationship between two adult persons (whether or not related by family and irrespective of their gender) who live together as a couple on a genuine domestic basis, but does not include:

(a) the relationship between a legally married couple; or

(b) a relationship where 1 of the persons provides the other with domestic support or personal care (or both) for fee or reward, or on behalf of some other person or an organisation of whatever kind.

Note: Two persons may live together as a couple on a genuine domestic basis whether or not a sexual relationship exits or has ever existed, between them.

Previous Ownerships

If I already own vacant land, can I still get a FHOG?

Yes, if you have not entered into a building contract, or commenced building as an owner builder, before 1 July 2000.

I have previously owned a home in another state and/or territory. Will I be eligible for A FHOG upon the purchase of my first SA home?

If you owned the home prior to 1 July 2000 you are ineligible.

If you acquired the home on or after 1 July 2000 and did not occupy it for a continuous period of six months or more, you may be eligible.

I previously owned a home overseas. Am I still eligible?

Yes, the rules regarding previous ownership only applies to homes within Australia.

Do I get a FHOG if I previously owned a business premise?

Yes, a business premise is not considered a home for FHOG purposes unless it was also used for residential purposes.

Other

Can a company or trust apply for a FHOG?

No, companies and trusts are not eligible to receive a FHOG, except where the application is made on behalf of a person with a legal disability.

In this situation, the trustee isn’t the applicant, just the holder of the legal interest. The applicant’s equitable interest qualifies as a relevant interest, provided that the trustee is their guardian.

Can I receive a FHOGfor an investment property?

You cannot receive a FHOG for an investment property. The property must be occupied as your principal place of residence to receive the FHOG.

Is there a cap for the FHOG?

The market value is:

in the case of a contract for the purchase of a home is the consideration for the purchase of a 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.

Is there a minimum price I must pay to get the FHOG for a property?

No, there are no minimums, however if the purchase price is less than the maximum FHOG you will only receive a payment equal to the purchase price.

For example: if you purchase a new home (after 15 October 2012) the maximum FHOG you can receive is
$15 000. If the purchase price is only $10 000, you will only receive a FHOG of $10 000.

Can I purchase a percentage of a home with someone who has had a previous interest in a property?

No, all applicants receiving the FHOG must have a combined 100% interest in the property they are purchasing and all applicants must be eligible. There is a limit of one FHOG per application.

I wish to gift residential property to my son/daughter, is he/she eligible for a FHOG?

No, a FHOG is only payable where there is consideration and an eligible transaction. The FHOG cannot exceed the consideration. For example: if you pay $2500 for a property, that is the amount you will receive for a FHOG.

Is each applicant entitled to a FHOG?

No. Applicants are restricted to one application per eligible transaction. FHOG payments will not be split.

Is there a means test on income or assets to qualify for a FHOG?

No, personal income or wealth is not part of the eligibility criteria.

Can I receive a FHOG if I want to purchase a Housing Trust Home?

Yes, if you did not have a relevant interest in the property before 1 July 2000 and you meet all other eligibility criteria.

If you enter into a contract for your first progressive purchase on or after 1 July 2000, you can apply for FHOG. The full FHOG will be paid at the settlement of the first progressive purchase.

If the purchase price is less than the maximum FHOG amount available you will receive the amount equal to the purchase price as payment of the FHOG. The balance of the FHOG will not carry over to any further purchase. For example, assuming the contract was entered into between 15 October 2012 and 30 June 2014, if the purchase is $2500, you will receive the same amount and will not be entitled to the remaining amount on any further progressive purchase.

If you execute a progressive purchase contract before 1 July 2000 you will not receive FHOG.

If I purchase a home and receive a FHOG, but sell it later, do I have to refund the FHOG amount?

No, providing that:

for eligible transactions entered into on or after 1 January 2005, you occupied the home as your principal place of residence for a continuous period of at least six months commencing within 12 months after the date of settlement or completion of building.
for eligible transactions entered into between 1 July 2000 and 31 December 2004, you occupied the home as your principal place of residence within 12 months of the date of settlement or completion of building.

Will an applicant be expected to pay back the FHOG if they are found to have not met the eligibility criteria?

Yes. In addition, substantial penalties can be applied if it is found that the applicant acted dishonestly. The penalties are as follows:

a penalty of up to $20 000 or imprisonment for two years for making a false or misleading statement in or in connection with an application for a FHOG as specified in the First Home and Housing Construction Grants Act 2000.
a penalty of up to 100% of the FHOG amount may be imposed by the Commissioner as a result of an applicant's dishonesty where an amount is paid by way of a first home owner grant, along with repayment of the FHOG pursuant to the Act.

This page was last reviewed 22 November, 2012