The good news for first home buyers is that there are still opportunities to take advantage of government grants.
The key is knowing exactly what you’re entitled to, and for how much longer.
The opportunities for gaining a first home owner's grant have been reducing in recent times, but there are still some decent-sized grants to help you get on the ladder. Here's a state-by-state guide.
New South Wales
Eligible first home owners can receive the First Home Owner Grant (FHOG) of $7,000 to assist them in the buying or building of their first home, regardless of income or the area in which they plan to buy or build.
A cap of $835,000 on the value of the home has been in place since 1 January 2011. Only one grant is payable per purchase, regardless of the number of eligible applicants involved in the transaction.
The First Home Plus Scheme, is a NSW Government initiative providing exemptions or concessions on transfer duty for eligible first home buyers.
Homes up to the value of $500,000 are exempt from the tax, while homes valued between $500,000 and $600,000 receive a concession. In total, First Home benefits of up to $24,990 ($7,000, plus a duty exemption of up to $17,990) are available.
From 1 January 2012, the First Home Plus Scheme will be replaced by the First Home - New Home Scheme. Under this, stamp duty concessions will only be available to first home buyers purchasing a brand new home or vacant land intended to be used as the site for a first home.
Buyers of established properties will no longer receive the transfer duty exemption or concession as of 1 January 2012.
For more information, visit www.osr.nsw.gov.au
Victoria
The FHOG scheme provides a $7,000 grant to first home buyers. A cap of $750,000 applies.
Until 30 June 2012 (contract date), you may also be eligible to receive the First Home Bonus, an additional payment of $13,000 for new homes only – a cap of $600,000 applies.
If you are purchasing a new home in a regional municipality in Victoria, an additional $4,500 Regional Bonus is also available (in addition to the $13,000 First Home Bonus) until 30 June 2012 (contract date).
On top of this, eligible first home buyers may also be in line for a reduction of duty, provided you reside in the property for a continuous period of 12 months, commencing within 12 months of settlement.
A 20 per cent reduction applied as of 1 July 2011, with additional 10 per cent reductions on 1 january 2013, 1 January 2014 and 1 September 2014.
For more information, visit www.sro.vic.gov.au
Queensland
The FHOG scheme provides a $7,000 grant to first home buyers. A cap of $750,000 applies.
Until 31 January 2012, the $10,000 Queensland Government Building Boost Grant is available to buy or build a new home.
The First Home Concession is available to help reduce transfer duty costs, but eligibility requirements are in place.
For more details, visit www.osr.qld.gov.au
South Australia
The FHOG scheme provides a $7,000 grant to first home buyers. A cap of $575,000 applies.
A First Home Bonus Grant provides an additional payment of up to $8,000 for eligible first home buyers who enter into a contract to purchase or build a new home before 1 July 2012, or an owner builder who commences construction before this date.
For more information, visit www.revenuesa.gov.au
ACT
The FHOG scheme provides a $7,000 grant to first home buyers. A cap of $750,00 applies.
The Home Buyer Concession Scheme is an ACT Government initiative that charges duty at a concessional rate. The rate depends on the date of purchase.
The HBCS must be lodged within 90 days of the grant, transfer or agreement, and applicants must satisfy previous property ownership criteria, as well as an income test.
For more information, visit www.revenue.act.gov.au
Western Australia
The FHOG scheme provides a $7,000 grant to first home buyers. A cap of $750,000 applies.
The Home Buyers Assistance Account provides first home buyers with a grant of up to $2,000 to assist with the incidental expenses purchasing an established or partially built home through a licensed real estate agent for the purchase price of $400,000 or less.
For more information, visit www.finance.wa.gov.au
Tasmania
The FHOG scheme provides a $7,000 grant to first home buyers.
A duty concession may be available to eligible first home buyers.
A concession up to $4,000 is available for the purchase of established dwellings up to the dutiable value of $350,000, or $2,400 for the purchase of vacant land, up to the dutiable value of $175,000.
For more information, visit www.sro.tas.gov.au
Northern Territory
The FHOG scheme provides a $7,000 grant to first home buyers. A cap of $750,000 applies.
The Northern Territory Government provides a stamp duty First Home Owner Concession (FHOC) for first home or land buyers.
From May 2010, FHOC is an amount up to $26,730 off the duty payable on the first $540,000 of the dutiable value of the property. The FHOC is not means tested, but the purchase price of the home or land must not exceed $750,000 or $385,000 respectively.
Where these thresholds are exceeded, the FHOC does not apply, but you may be eligible for the Principal Place of Residence Rebate of up to $3,500 off the duty payable.
For further information, visit www.revenue.nt.gov.au
This article first appeared on www.realestate.com.au
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