First Home Owners Grant : Am I Eligible?

First Home Owners Grant
 

There are a host of eligibility requirements for the first homeowners grant and duty concessions which can vary from state to state, so be sure to visit your state’s office of revenue website and find out if you’re eligible.

Am I eligible for the First Home Owners Grant?

The eligibility criteria for first home buyers differ slightly between the states and territories but generally, eligibility criteria include:

Who is eligible?

  • Australian citizens at least 18 years of age

  • Singles earning up to $125,000

Ownership:

  • First-home buyers only

  • Principal place of residence, min 12 months

Property

  • New home

  • House and land package

  • Vacant land with a contract to build a home

  • Off-the-plan apartment or townhouse

There are other state-specific conditions as well, which will depend on the state you’re buying in. Please contact us for more details

 
First homeowner
 

All your questions about the first homeowners’ grant answered

To help you to understand the First Home Owners Grant, Sandcastle Finance have compiled a list of answers to some of the most frequently asked questions:

  • What happens if I move out of my home in the first 12 months? If you have lived in your home for a continuous period of 12 months, you may keep the grant, but if you move out before this time, you need to repay the grant.

  • Can I apply for the first homeowner grant if I'm a temporary resident? Unfortunately, first-homeowner benefits aren't available for temporary residents. They also can't be retroactively applied for once permanent residency is obtained.

  • My partner and I are buying the property jointly and neither of us has owned a property before. Do we each get a grant? No. A single grant is payable per property transaction not per person.

  • Does my income affect the grant and is the grant taxed? No, the grant is not means-tested and you do not have to pay tax on it.

Updated info:
On July 1st 2024 The Australian Government released 35,000 new places under the Home Guarantee scheme up from 10,000 last financial year

What this means is the Government will guarantee the loans so you don’t need to pay Lenders Mortgage Insurance when you only have a 5% deposit. There are some stamp duty discounts as well as other rules around how much you can buy for and still get a discount and what security they will accept. 

Essentially this scheme allows First Home Owners with a small 5% deposit to purchase a home up to the value of NOW $900,000 (previously $800,000

The Government increased the stamp duty thresholds - Please note each state is different.

In NSW the stamp duty threshold is now $800,000 (previously it was $650,000

On or after 1 July 2023 in NSW

Stamp duty concessions will apply to properties worth between $800,000 and $1 million. 

If you’re an eligible first home buyer, and you’re buying vacant land to build a property on which you intend to occupy, then there’s a full exemption from stamp duty up to a land purchase price of $350,000.

Between $350,000 and $450,000, there is a sliding scale concession. Anything above $450,000 you pay the full stamp duty.

  • Example 1: Purchase price $800,000 - no stamp duty, savings of $31,490

  • Example 2: Purchase price $850,000 - stamp duty $9,882.25, savings of $22,890.75

  • Example 3: Purchase Price $900,000 - stamp duty $19,764.50, savings of $15,264.50

  • Example 3: Purchase price $950,000 - stamp duty, savings $7,632.25

If you would rather have a private, obligation-free chat about your options, feel free to contact us here. https://www.sandcastlefinance.com.au/contact-us

 
Sally Prowse