The Budget delivered on 12 May 2009 has retained the First Home
Owners Grant Scheme but changes are phased in over the next 6
months until December 2009 when the scheme is set to end.
The current situation
The First Home Owner Grant was introduced in 2000 to offset the
impact of GST on first home ownership.
Currently, a first home buyer who enters into a contract between
14 October 2008 and 30 June 2009 (inclusive) to:
buy an established home1 is eligible to receive the
$7,000 First Home Owner Grant plus an additional $7,000 boost;
build a new home or buy a newly constructed home2 is
eligible to receive the $7,000 First Home Owner Grant plus an
additional $14,000 boost.
To receive the boost, the buyer must also be eligible for the
First Home Owner Grant.
To be eligible for the First Home Owner Grant (either for an
established home or a new home), the buyer and his or her spouse
(if applicable) must previously never have been paid the First Home
Owner Grant and the buyer must move into the home as his or her
principal place of residence within one year of completion of the
acquisition Contract. The Buyer must remain in continuous
occupation of that home for at least 6 months.
For a buyer to be eligible for the new home or newly constructed
home boost of $14,000 it must be the first sale of the home and the
home must never have been previously occupied as a place of
residence, including by the builder, a tenant or other occupant. If
the residential premises have been occupied at any stage (even as
part of a short term letting pool), the Buyer would not be eligible
for the "new home/ newly constructed home" boost, however
would be eligible to receive the First Home Owner Grant plus the
$7,000 boost for buying an established home.
The situation post 1 July 2009
The First Home Owner Grant Scheme will continue for an
additional six months until 31 December 2009.
The grant will continue at current levels until 30 September
From 1 October to 31 December 2009, the total grant will halve
to $10,500 for established homes and $14,000 for new homes (both
figures include the $7,000 First Home Owners grant with the
respective "boost" amount halving).
1 A home that has been lived in previously.
2 Prescribed building periods apply to new homes and
newly constructed homes. Owner/ builders must start construction
(i.e. lay the foundation) of the new home between 14 October 2008
and 30 June 2009.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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