First Home Owners Grant

(For information on the First Home Owners Saving Account go to our blog here.

First Home Owners Grant scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. The First Home Owners scheme is a national scheme funded by and administered under the states and territories.

Under the First Home Owners scheme, a one-off grant of up to $7000 is payable to first home owners that satisfy all the eligibility criteria.

To see if you are eligible or to obtain more information about the First Home Owners Grant, go directly to the first home owners scheme web page and select the state or territory in which you intend to purchase your home. Visit the site here.

Eligibility for the first home owners grant: You and any joint applicants must satisfy all the eligibility criteria.

In addition, any person who has a relevant interest in the land on which the home is situated must be an applicant and must also satisfy the eligibility criteria:

  • You must have an eligible transaction in relation to the purchase or construction of your first home and
  • You must reside in the home to which your application relates as your principal place of residence for a continuous period of at least six months. The period of occupation must start within one year after the eligible transaction is completed.

Obligations. If you apply for a First Home Owners scheme you must meet certain obligations, which include that you:

  • provide the full and correct information necessary for the Commissioner of State Revenue ('Commissioner') to determine your eligibility for the Grant
  • notify the Commissioner if you do not satisfy all the conditions for the First Home Owners Grant; this includes the residence requirement
  • repay the Grant where a condition of payment is not met.

Applying for the grant:

First Home Owners Grant applicants must be at least 18 years of age on the date of entering into the eligible transaction. (The Commissioner may consider an exemption from this requirement in certain circumstances):

  • only one application will be accepted for each eligible transaction, regardless of the number of applicants, and only one grant is payable per application
  • all persons who have a relevant interest in the home on completion of the eligible transaction must complete the application form for the Grant.
  • you must lodge your application within one year after the transaction has been completed, or your application will be refused. (The Commissioner may extend this date in certain circumstances)
  • you must carefully consider the correctness of the information you provide to the Commissioner as there are significant penalties for providing false or misleading information

Supporting documentation: For the First home owners grant you must provide all relevant supporting documentation with your application.

You should view the supporting documentation checklist in the First Home Owner Grant application kit. To ensure that your application is processed in a timely manner, the supporting documentation checklist should be completed, signed and attached to your application.

Note: all copies of supporting documents must be certified. Please refer to the supporting documentation checklist within your First Home Owners scheme application kit.

By David Maynard

CEO My Tax Zone

Copyright 2014. My Tax Zone.