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.
Under the scheme, a one-off grant is payable to first homeowners that satisfy all the eligibility criteria.
If you are buying or building a new home valued up to $750K, you may be eligible for the Frist Home Owner Grant of up to $10,000. First home buyers can also claim a 30% reduction in stamp duty for purchases up to $600,000, a reduction set to increase by 10% in July 2014 and 10% again in July 2015.
A few rules that apply the FHOG:
- Can apply to the purchase of a house, townhouse, apartment, unit or similar.
- Applicants are Australian citizens or permanent residents.
- You must live in the home as your permanent place of residence.
- New Zealanders holding a special category visa or anyone holding a permanent visa are considered to be a permanent resident of Australia can apply.
- Established homes are no longer eligible to receive the FHOG.