The First Home Owner Grant has been reduced to $10,000 as of 1 January 2016. The First Home Owner Grant (New Homes) scheme has been available for several years to assist eligible first home owners to purchase a new home or build their home by offering a grant. The grant amount is determined by the date of the eligible transaction. This is the date of the contract to purchase a new home or contract to build a home.
- For eligible transactions made on or after 1 January 2016, the grant amount is $10,000.
- For eligible transactions made between 1 October 2012 and 31 December 2015, the grant amount is $15,000.
Here is a re-cap on the some of the terms and conditions associated with the grant:
- New homes only – this means a home that has not previously been occupied, sold as a residence, renovated or built to replace demolished premises
- Individuals only – not applicable to companies or trusts
- If you OR your spouse OR your de facto has owned a property in Australia before, you are ineligible
- At least one of the applicants must be a permanent resident or Australian Citizen
- The total value of the property cannot exceed $750,000
- At least one of the applicants must live in the home as their principal place of residence for a continuous period of six months commencing within twelve months of being the owner or if you are building, within 12 months of construction being completed
Other things to consider:
- The grant is not available for the purchase of vacant land however where you have entered separate Land and Building Contracts:
- Once you are making an application for a construction loan, you can apply for the grant through your financial institution and the grant is available to draw down from your first progress payment; or
- You can apply for the grant directly from the Office of State Revenue once construction of your home has been completed provided the application is lodged within 12 months of completion of construction.
Please note: If you have not yet claimed the First Home Owner Grant but previously entered into a Contract for the purchase or construction of a new home and the date you entered that Contract is before 1 January 2016, you are still eligible for the $15,000.
This is a summary only. For more detailed information about First Home Buyer incentives please click through to this link http://www.osr.nsw.gov.au/first-home-buyers otherwise feel free to contact our office.
*This information is current as at February 2016