First Home Owner Grant (New Homes) to decrease in 2016

The First Home Owner Grant (New Homes) scheme was established to assist first home buyers buy a new home, or build their home, by offering a $15,000 grant. The scheme will reduce to $10,000 on the 1st of January 2016.

What is a new home?

According to the Office of State Revenue, a new home is

• a home that has not been previously occupied, including occupation by the builder, a tenant or other occupant.
• a home that has not been previously sold as a residence. Where the home is being purchased, it must be the first sale of that home
• a home that has been substantially renovated and a home built to replace demolished premises.

Are you eligible for the grant?

To be eligible for the $15,000 grant:

• the contract date must be on or after 1 October 2012
• the home is a brand new home
• you are over 18
• you or your spouse (including de facto spouse) have never held a relevant interest in any residential property in Australia prior to 1 July 2000.
  However, you may be eligible if you or your spouse, including de facto spouse, have only had a relevant interest in any residential property in Australia on or after 1 July 2000 and you have not resided in that property for a continuous period of at least 6 months.
• the value of the property must not exceed the First Home Owner Grant Cap of $650,000 for contracts dated between 1 October 2012 to 30 June 2014
• the value of the property must not exceed the First Home Owner Grant Cap of $750,000 for contracts dated on or after 1 July 2014
• you have not received a first home owners grant in any State or Territory, unless subsequenly repaid

• you need to live in the home for a continuous period of at least 6 months
• at least one applicant is a permanent resident or Australian citizen
• each applicant must be a natural person and not a company or trust.

As your mortgage brokers, we can assist you with the First Home Owners Grant Application forms to ensure you have the grant funded at the time of purchase, or funded as a part of your build project in line with your overall budget. 

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