First Home Owner Grants - What’s It All About?

First Home Owner Grants include various payments and concessions available to first time buyers, throughout the Australian States. Certain requirements have to be met, of course. But first home owners who are buying a house, or land, to build their own homes, could be eligible for a grant of $7000. First Home Owner Grants - What's It All About?

First Home Owner Grants were introduced in the year 2000, on July 1st. Brought in to help offset the impact of the new Goods & Services Tax [GST], which was introduced by the Australian Federal Government on the very same day. The Goods and Services Tax (GST) would replace the old Wholesale Sales Tax of the nineteen thirties. The previous tax was implemented at a time when goods were the mainstay of Australia’s economy. Over the years, a more service based industry has evolved, therefore, a new tax was inevitable. The GST was to broaden the tax base, and include those businesses which were service based. Those businesses which had previously enjoyed a somewhat unfair advantage over the goods industry. First Home Owner Grants are funded and administered by each states individual legislation. However, all the schemes are funded by the ACT Government, and administered within the Australian Central Territories Revenue Office.

First Home Owner Grants are, as far as anyone is currently aware, an ongoing scheme.. As yet, there is no discussion of a date when this assistance will be withdrawn, so that’s good news for many first time buyers. Although there are criteria which need to be met, First Home Owners Grants are not means tested, nor does it depend on the price of the property. Before purchase, applications for First Home Owner Grants can be made through an approved agent, within the state where the property or land is being purchased. Or, direct to that states Revenue Offices. Applications, which successfully include all the necessary, correct documentation, can take around two weeks to process.

Each state runs it’s own First Home Owner Grants scheme, therefore, each have their own requirements. Qualification for the grants do vary, however, certain aspects will be true for all states. For instance, the building being purchased, or constructed, must be a lawful residence. It must also be deemed by the state commissioner as suitable for use as a place of residence. In all states this would include a house, flat or unit. In many states, it might also include purchasing land to relocate a mobile home.

Most First Home Owner Grants must be used as a main residence, by those who the Grant was awarded to, for a minimum and continual period of six months. Residency of the home must also take place within twelve months of completion. Any first time owner, who has entered into a contract of sale, to purchase any permanent residence, after July 1st 2000, could be eligible. Only one First Home Owner Grant will ever be paid. Those who’ve received First Home Owner Grants previously, in any Australian state would not be eligible for a grant, in another state. Also, only individuals, not companies, may apply for First Home Owner Grants.

Your mortgage broker has all the information you need to claim your grants. To find your nearest mortgage broker call