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Buying your first home can be an exciting and nerve-wracking experience, particularly when it comes to financing. Luckily, the Australian government has several schemes in place to help first-time buyers get their foot on the property ladder. One of the most popular programs is the First Home Owners Grant (FHOG). In this blog, we will look at everything you need to know about the FHOG in Australia.
The First Home Owners Grant is a scheme introduced by the Australian government to help buyers purchase their first home by offsetting the effect of GST on home ownership. The grant was introduced on 1 July 2000 and is funded by the states and territories in Australia under their own legislation. The FHOG provides a one-off payment to eligible buyers to assist with the purchase of a new home or a substantially renovated home.
For first home buyers, a stamp duty exemption is a tax relief provided by some governments to reduce the cost of purchasing a first home. The specific details of a stamp duty exemption for first home buyers can vary depending on the jurisdiction, but generally it works by exempting or reducing the amount of stamp duty that a first home buyer would otherwise have to pay on the purchase of a property. In some cases, the exemption may only apply to properties that fall below a certain value threshold, or to properties that are being purchased as a primary residence.
The amount of the grant varies from state to state. In most states and territories, including NSW, the grant is currently set at $10,000 for new homes, while the grant for existing homes is generally not available. However, in some states, such as Victoria and Western Australia, the grant amount is higher for homes located in regional areas.
Certain limitations apply to what homes are eligible under the scheme. For example:
To be eligible for the FHOG, you must meet certain criteria. These criteria vary from state to state, but in general you must:
It’s important to note that eligibility requirements may change, and it’s essential to check the specific requirements in your state or territory before applying for the grant.
To apply for the FHOG, you will need to complete an application form, which is available on your state or territory’s revenue office website. You’ll also need to provide supporting documents, such as proof of identity, evidence of income and assets and a copy of the contract of sale for the property you are purchasing.
The timing of the payment varies from state to state, but generally, you will receive the FHOG payment after settlement of the property. Settlement is the process where the ownership of the property is transferred from the seller to the buyer. The payment is usually made directly to your nominated bank account.
For more information on the First Home Owners Grant or personalised advice, contact the GMS Legal & Conveyancing team on (02) 4397 2233.
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