First Home Owners
The availability of the First Home Owners Grant (‘FHOG’) to first time buyers is well known. Your eligibility for this grant will depend on the requirements applicable at the point in time when you sign a Contract of Sale, and these are subject to change. Currently, the FHOG is limited to persons who build or purchase a new home.
As well as the FHOG, first time buyers may also be eligible for the First Home Buyer Duty Exemption, Concession or Reduction which can reduce the amount of stamp duty payable. The First Home Buyer Duty Exemption, Concession or Reduction may still be available to you even if you do not qualify for the FHOG.
To claim the First Home Buyer Duty Exemption, Concession or Reduction, you must be able to satisfy the following requirements:
- You have signed a Contract of Sale to purchase a property on or after 1 July 2017;
- The purchase price does not exceed $750,000;
- At least one of the purchasers listed in the Contract of Sale will live in the property as their principal place of residence for a continuous period of 12 months commencing within 12 months from the date of settlement;
- All purchasers listed in the Contract of Sale satisfy the First Home Owner Grant eligibility criteria. This means that:
- You and your spouse/partner have not previously received the FHOG;
- You and your spouse/partner have not previously owned or currently own any other residential property that you have occupied; and
- You are an Australian citizen or permanent resident; and
- You have purchased an existing house or vacant land. If you intend to build your first home, you may have to pay full stamp duty at settlement and apply for a refund once the building works are complete. To claim the refund in these circumstances, the building works must be completed and a Certificate of Occupancy issued within 12 months of settlement.
If you are eligible, the concession is applied on a sliding scale depending on the total purchase price.
Buying your first property can be an exciting but stressful time. At TBA Law we assist all our conveyancing clients throughout the transaction from signing the Contract of Sale right through to settlement. If you are unsure whether you are eligible for this concession, please contact our office and our friendly staff would be more than willing to assist you.