First Home Owner Grant

The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.

When introduced it was a non means-tested grant of $7,000. The Rudd Government recently introduced a FHOG "Boost" as part of the package to "stimulate housing activity and give first homebuyers a better chance in the housing market".

The First Home Owner Boost Scheme (the Boost) is an Australian Government initiative to assist first home buyers purchase or build their first home. The scheme is administered by the Victorian Government (State Revenue Office) and is in addition to the $7,000 First Home Owner Grant.

For contracts entered into between 14 October 2008 and 30 September 2009, the Boost provides first home buyers with:

  • An extra $7,000 for buying an established home
  • An extra $14,000 for buying or building a new home

For contracts entered into between 1 October 2009 and 31 December 2009, the Boost provides first home buyers with:

  • An extra $3,500 for buying an established home
  • An extra $7,000 for buying or building a new home

Eligibility To Receive The Grant

To be eligible to receive the Boost, first home buyers must satisfy the eligibility requirements for both the existing First Home Owner Grant and the additional Boost requirements.

To be eligible to receive the grant, the SRO must be satisfied that:

  • You and your spouse/partner have not received a grant in any State or Territory of Australia
  • You and your spouse/partner must not have owned residential property, either jointly, separately or with some other person prior to 1 July 2000, in any State or Territory of Australia
  • You and your spouse/partner must not have occupied for a continuous period of at least 6 months, a residential property in which either of you acquired a relevant interest on or after 1 July 2000 in any State or Territory of Australia
  • You must be a natural person (not a company) and at least 18 years of age at the time of settlement or completion of construction

Additional Eligibility Criteria for First Home Owner Boost

Established homes

To be eligible to receive the Boost for the purchase of an established home, first home buyers must have entered into a contract to purchase an established home between 14 October 2008 and 31 December 2009 (inclusive). Note: The are different amounts available under the boost depending on the date the contract was entered into.

New Homes Being Purchased Under a Contract

To be eligible to receive the Boost for the purchase of a newly constructed home, first home buyers must have entered into a contract to purchase a newly constructed home between 14 October 2008 and 31 December 2009 (inclusive). Note: The are different amounts available under the boost depending on the date the contract was entered into.

Where a newly constructed home is being purchased, it must be:

  • The first sale of that home
  • The home must also have never been previously occupied as a place of residence, including occupation by the builder, a tenant or other occupant

New Homes Being Built Under a Building Contract

To be eligible to receive the Boost for building a new home, first home buyers must have entered into a contract to build a home between 14 October 2008 and 31 December 2009 (inclusive). Note: There are different amounts available under the boost depending on the date the contract was entered into.

In addition:

  • Construction must commence within 26 weeks of the date of the contract
  • The contract must specify a completion date for building work within 18 months of the date of construction commencing or construction must be completed within 18 months of the construction commencing