The First Home Owner Grant (FHOG) was introduced all the way back in July 2000 as a way to offset the impact on home ownership when the Goods and Services Tax (GST) was first introduced. Although it is a national scheme, it is funded by the individual states and territories and is regulated by their specific legislation.
Here in South Australia, the First Home Owner Grant of $15,000 is available for the purchase or construction of a new residential property, including a house, flat, unit, townhouse or apartment that meets local planning standards. METRO425 purchasers are eligible for the First Home Owner Grant if they meet the other eligibility criteria.
At least one of the applicants must be an Australian citizen or have permanent residency here in Australia, however New Zealand citizens permanently residing in Australia who hold Special Category Visas may also apply.
The applicant and their spouse or domestic partner also must not have previously owned a residential property anywhere in Australia prior to 1 July 2000, and must not have owned a residential property anywhere in Australia on or after 1 July 2000 and occupied that property continuously for six months or more.
Importantly, all applicants must occupy the home purchased or built as their principal place of residence for a continuous period of at least six months commencing within 12 months after completion of the eligible transaction.
Payment of the grant requires an application to be approved by RevenueSA, or a financial institution authorised by RevenueSA, to process FHOG applications.
If you are using a mortgage broker, or applying directly for finance with a lender, they will be able to help you navigate the application process.
If you don’t require finance for your purchase, or you simply want to know more about the First Home Owner Grant before approaching a lender, you are welcome to contact Constantine Pappas on 0423 047 020 with any questions you may have.