First Home Owner Grant Property Value Cap
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 of the property:
- 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.
What Homes Qualify - The $7000 Grant
A new or established dwelling including a house, flat, unit, townhouse or apartment anywhere in South Australia that meets local planning standards. The dwelling must be used as your principal place of residence within 12 months of the date of settlement in the case of an established home, or for a new home, 12 months from the date construction is completed.
The contract to purchase an established home or to build a new home must be signed no earlier than 1 July 2000.
Who is eligible to receive the Grant?
A first home buyer who fulfils the criteria below:
- 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;
- none of the applicants or their spouse/domestic partner can have previously owned a residential property anywhere in Australia prior to 1 July 2000;
- for eligible transactions entered into on or after 1 January 2005, an applicant or their spouse/domestic partner cannot have purchased a property on or after 1 July 2000 and occupied that property continuously for 6 months or more;
- 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; and
- applicant(s) must be at least the age of 18 years at the time of making application for the grant.
To see if you may be eligible to receive the First Home Owners Grant, use our checklist.
How do I apply?
Applicants can complete and lodge the appropriate application form with either an Approved Agent or RevenueSA. You can complete and lodge the application form with an Approved FHOG 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. For further information, please visit the How to Apply for FHOG page.
First Home Bonus Grant
First Home buyers who qualify for the $7000 First Home Owner Grant may also be eligible for a First Home Bonus Grant (FHBG). Applicants may be eligible to receive a First Home Bonus Grant of up to $4000 if they entered into a contract to purchase or build a home, or commenced construction as owner builders, between 5 June 2008 and 16 September 2010 (inclusive). A FHBG of up to $8000 is potentially available to applicants who enter into a contract to purchase or build a NEW home, or commence construction as owner builders, on or after 17 September 2010 up to and including 30 June 2012.
As part of the State Budget handed down today, 9 June 2011, the Government announced the phase out of the $8,000 First Home Bonus Grant (the “Bonus”) by 1 July 2013.
The Bonus will be reduced to $4,000 (and phase out between $400 000 and $450 000) from 1 July 2012 and then to be fully abolished from 1 July 2013.
At the same time, commencement and completion conditions for the building of new homes will be introduced for eligible transactions entered into on or after 10 June 2011.
The Commissioner has the discretion to allow a longer period for either the commencement of and/or the completion of the building of a home. See Information Circular 23 for further details.
More information is available on the First Home Bonus Grant page.
First Home Owners Boost
The First Home Owners Boost does not apply to applicants who entered into a contract to purchase or build a home on or after 1 January 2010, or who commenced construction as owner builders on or after 1 January 2010.
For more information please refer to the First Home Owners Boost page.
When will the scheme end?
There has been no decision made as to when the scheme will end. At this stage the First Home Owner Grant is an ongoing initiative.
More Information?
Further information is available on this site on the Frequently Asked Questions page or the Definition of FHOG Terms page. Information is also available for the First Home Bonus Grant and the First Home Owner Boost.
The following circulars also contain information regarding FHOG Circular 200, Circular 206, Circular 219, Circular 250 and Circular 282. Information regarding the First Home Bonus Grant is contained in Circular 288. Similarly, information regarding the First Home Owners Boost is contained in Circular 307 and Revenue Ruling FHOG001. Information Circular 18 contains information regarding the FHOG cap and the First Home Bonus Grant of up to $8000.
Information Circular 23 contains information relating to the First Home Bonus Grant handed down in the State Budget on 9 June 2011.
or you can direct your enquiry to:
RevenueSA
Telephone (08) 8226 3750 or Free Call 1800 637 778
or E-mail
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This page was last reviewed 9 December, 2011
