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
Timing
First Home Bonus Grant
First Home Owners Boost
Other

Overview

What is FHOG?

The First Home Owner Grant is a one-off grant of up to $7000 payable to eligible first home owners on the purchase or construction of their first home.

Is there a cap for FHOG?

As part of the State Budget 2010 handed down on 16 September 2010, the Treasurer announced the introduction of a FHOG property value cap of $575,000 based on the market value of properties purchased or built by first home buyers otherwise eligible for the First Home Owner Grant. The cap will apply 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 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.

Why has it been introduced?

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 Grant?

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;
for eligible transactions entered into between 1 July 2000 and 31 December 2004, an applicant or their spouse/domestic partner cannot have purchased a property and occupied that property;
for eligible transactions entered into on or after 1 January 2005, an applicant or their spouse/domestic partner cannot have purchased a property and occupied that property for 6 months or more;
for eligible transactions entered into between 1 July 2000 and 31 December 2004, applicants must occupy the home purchased or built as their principal place of residence within 12 months of the date of purchase or completion of construction;
for eligible transactions entered into on or after 1 January 2005, 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?

It can be a single dwelling, duplex, flat, townhouse etc. Any fixed dwelling that is suitable as a residence. The Grant 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 application form with either an Approved Agent or RevenueSA.

You can lodge an application form with an Approved Agent if you are borrowing funds from that Agent, as part of buying or building your home. 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 form. If you are building a new home, you are required to submit your Building Contract with your application form. If you are an owner builder, you are required to submit with your application form a Statutory Declaration which states that the home is completed and ready for occupancy.

If applying via an Approved Agent, complete and submit the application form 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, complete and submit the application form with relevant supporting documentation. If you are purchasing an existing home, you must also provide proof of lodgement for registration with the Land 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?

Applying through an Approved Agent:

For the purchase of an existing dwelling, payment will be made at settlement. For a contract to build, payment will be made on the first progress payment to the builder. For an owner builder, payment 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.

Applying through RevenueSA:

For the purchase of an existing dwelling, payment will be made on proof of lodgement for registration at the Land Titles Office. For a contract to build payment will be made upon proof of the first progress payment to the builder. For an owner builder, payment 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.

Occupying the Home

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

The applicant(s) must occupy the home for a continuous period of at least 6 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?

Where building work commences between 1 July 2000 and 31 December 2004, you must occupy the home within 12 months of the home being ready for occupation.

Where building work commences on or after 1 January 2005, you must occupy the home for a continuous period of at least 6 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, the eligibility criteria states that for eligible transactions entered into between 1 July 2000 and 31 December 2004, an applicant must occupy the relevant home as a "principal place of residence" within 12 months after completion of the eligible transaction.

For eligible transactions entered into on or after 1 January 2005, an applicant must occupy the relevant home as a principal place of residence for a continuous period of at least 6 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 with the principal place of residence requirement, 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?

For eligible transactions entered into between 1 July 2000 and 31 December 2004, providing you occupy the home as your principal place of residence within 12 months of completion of the eligible transaction, you are still eligible for the Grant.

For eligible transactions entered into on or after 1 January 2005, 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 the Grant.

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 (including domestic partner) have previously owned a home before 1 July 2000 in Australia, whether they have lived in it or not.

Owner Builders

Can owner builders apply for the Grant?

Owner builders can apply for the Grant after the foundations have been laid. Owner builders must apply for the Grant 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?

Where building work commences between 1 July 2000 and 31 December 2004, owner builders must occupy within 12 months of the date of completion of construction (ready for occupation).

Where building work commences on or after 1 January 2005, owner builders must occupy for a continuous period of at least 6 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 the home prior to 1/7/2000 you are not eligible. If the home was purchased on or after 1/7/2000, and your spouse/domestic partner did not occupy the home, 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 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 form. 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 Grant?

If you are divorced/separated, you are not required to consider the ownerships of your previous spouse/domestic partner. You will be eligible for the Grant provided that you have not had a relevant interest in a previous property and you meet all other eligibility criteria.

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

Yes, vacant land is not regarded as residential property (a home) 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 2 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 the Grant?

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

I have previously owned a home in another State. Will I be eligible for the Grant upon the purchase of my first SA home?

If you owned the home prior to 1 July 2000 you are not eligible. If you purchased the home between 1 July 2000 and 31 December 2004, and did not occupy that home you may still be eligible.

If you purchased the home on or after 1 January 2005 and did not occupy that home for 6 months or more you may still be eligible.

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

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

Do I get the Grant if I previously owned a business premise?

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

Timing

Can I have a contract or option to purchase signed before 1 July 2000, and still receive the Grant?

No, all contracts or options to purchase must be signed after 1 July 2000 for applicants to receive the Grant.

The settlement date for my purchase falls after 1 July 2000 although the paperwork was all done prior to this date. Can I qualify for the Grant?

No, the Grant is only payable if the contract is entered into after 1 July 2000.

Do I still qualify for the Grant if I submit plans to council prior to 1 July 2000?

The date you submit plans to council has no effect on your eligibility providing that you have not entered into an option/arrangement or contract to build prior to 1 July 2000.

Other

Can a company or trust apply for the Grant?

No, a company or trust is not eligible to receive the Grant, except where the application is made on behalf of a person with a legal disability.

Can I receive the Grant for an Investment property?

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

Is there a cap for FHOG?

As part of the State Budget 2010 handed down on 16 September 2010, a FHOG property value cap of $575,000 based on the market value of properties purchased or built by first home buyers otherwise eligible for the First Home Owner Grant. The cap will apply to contracts entered into for the purchase or construction of a home, or in the case of an owner builder commencement of construction on or after 17 September 2010.

Are there any limits on the price of a property I must pay to get the Grant?

No, there are no limits, however, the maximum grant you can receive is the purchase price or $7000, whichever is the lower amount.

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

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

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

No, the Grant is only given when there is consideration and a contract. The Grant is equal to the consideration i.e. if you pay $2500 for a property that is the amount you will receive for a grant.

Is each applicant entitled to the Grant?

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

Am I still eligible for the current Stamp Duty Concession?

Yes, if you fall into the relevant criteria set out in the Stamp Duties Act 1923, you can still receive the Stamp Duty Concession as well as the Grant. You must have entered into a contract to purchase or build a home as your principal place of residence within 2 years of the conveyance being on or before 5 June 2008, or in the case of an owner builder, commenced construction prior to 5 June 2008.

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

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

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

Yes, if you did not have any interest in the property before 1 July 2000 and you meet all other eligibility criteria. If an you enter into a contract for your first progressive purchase on or after 1 July 2000, you can apply for the Grant. The full Grant will be paid at the settlement of the first progressive purchase. If the purchase price is less than $7000 you will receive the amount equal to the purchase price as payment of the Grant. The balance of the Grant will not carry over to any further purchase. i.e. if the purchase is $2500, you will receive the same amount and will not be entitled to the remaining $4500 on any further progressive purchase. If you have a progressive purchase contract before 1 July 2000 you will not receive the Grant.

If I purchase a home and receive the Grant, but sell it 6 months later, do I have to refund the Grant amount?

No, providing that:

for eligible transactions entered into between 1 July 2000 and 31 December 2004, you did occupy the home as your principal place of residence within 12 months of the date of settlement or completion of building; or
for eligible transactions entered into on or after 1 January 2005, you did occupy the home as your principal place of residence for a continuous period of at least 6 months commencing within 12 months after the date of settlement or completion of building.

Will an applicant be expected to pay back the Grant 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 2 years for making a false or misleading statement in or in connection with an application for a first home owner grant as specified in the First Home Owner Grant Act 2000;
a penalty of up to 100 % of the Grant 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 Grant pursuant to the Act.

This page was last reviewed 5 January, 2012