First Home Owner Grant Fact Sheet

Apply using form F-FHOG 1 ‘FHOG Application and/or Pre-approval for the First Home Owner Rate of Duty’.

An application for the FHOG and/or FHOR of duty can be made once a contract to purchase or build a home has been signed and dated by all parties to the contract and appropriately witnessed or, where the application is made as an owner builder, when the foundations have been laid.

An application must be made within 12 months of completion of the eligible transaction, and may be lodged through an Approved Agent or with the Office of State Revenue.

If you are unsure where to lodge your form and are obtaining finance through a financial institution, please consult with them prior to lodgement to ensure your form is sent to the correct place.

Eligible first home buyers who enter into a contract between 1 January 2017 and 30 June 2017 to purchase or construct a new home, and owner builders who commence laying foundations of their home between those dates, will receive a boost of $5,000 in addition to the $10,000 FHOG.

For a contract to build a home, construction must commence within 26 weeks of entering into a building contract and be completed within 18 months after construction commences. For owner builders, construction must be completed by 30 June 2019.

The purchase of a new home ‘off-the-plan’ will only be eligible if construction is completed by 30 June 2019. As with the existing grant, the boost will be paid for homes up to the value of $750,000 (or up to $1 million if the home is located north of the 26th parallel).

How to apply for the boost

In addition to completing the F-FHOG 1 application form, you are required to also complete form F-FHOG 5 ‘Boost Payment - Addendum to the FHOG’.

To be eligible for the FHOG, applications must satisfy the following criteria

• Each applicant must be a natural person (i.e. not a company or trust)
• Each applicant must be 18 years of age or over at the date of making an application
• At least one of the applicants must be an Australian citizen or permanent resident at the date of making an application
• Each applicant and/or their spouse cannot have previously received a FHOG or FHOR of duty under this scheme
• Each applicant and/or their spouse cannot have owned residential property anywhere in Australia before 1 July 2000
• Each applicant and/or their spouse cannot have previously owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence before 1 July 2004
• Each applicant and/or their spouse cannot have previously owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence for a continuous period of at least six months that began on or after 1 July 2004
• Each applicant must occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months of completion of the eligible transaction
• Each applicant must have entered into an eligible transaction on or after 1 July 2000. An eligible transaction is defined under section 14 of the First Home Owner Grant Act 2000, but is generally a contract for the purchase or construction of a home, or commencement of construction of a home as an owner builder.
• For eligible transactions commencing on or after 1 January 2010, the total value of the home must not exceed the cap amount. The cap amount is
  • $750,000 if the property is located south of the 26th parallel of south latitude or
  • $1,000,000 if located north of the 26th parallel of south latitude
• Each applicant must own the home in their own capacity and not as a trustee of a trust (except as a guardian who holds the interest on trust for a person with a legal disability).

Supporting documentation

Each applicant and their spouse are required to submit proof of identity documents with an application for the FHOG. This will include evidence that at least one applicant is an Australian citizen or permanent resident.

Each application must be accompanied by documentary evidence of the eligible transaction. This may include a copy of the contract to purchase or build a home, or evidence of the costs incurred by an applicant to construct a home as an owner builder. In some cases the Commissioner may require a copy of a valuation of the home.

Please refer to the form F-FHOG 1 ‘FHOG Application Form and/or Pre-approval for First Home Owner Rate of Duty’ for details of the requirements.

Residence requirement

To be eligible for the FHOG and FHOR of duty, each applicant must occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months of completion of the eligible transaction.

If you are unable to satisfy the residence requirement you must notify the Commissioner in writing. Where you can clearly demonstrate good reasons for being unable to satisfy the residence requirements, that are unforseen or beyond your control, the Commissioner may consider a written application to

• reduce the time you are required to live in the home to a period of less than six months
• extend the time allowed for you to commence residing in the home to a period of longer than twelve months or
• where there are two or more joint applicants, exempt an applicant from the residence requirement.

An application form to vary the residence requirements is available from our website. The Commissioner will make a determination of the application and advise you whether you are required to repay the FHOG.

Notification of your inability to satisfy the residence requirement must be given within 30 days of the expiration of the required twelve month residency take-up period, or the date it becomes apparent you will not be able to fulfil the requirement (whichever is the earlier).

Failure to advise the Commissioner in writing may result in you being required to repay the FHOG with penalties, and also being ineligible for a future FHOG.

The Office of State Revenue conducts investigations and compliance checks to ensure that the FHOG is only given to those applicants who are entitled to receive it, and to ensure that applicants satisfy the residency requirements.

If you are found to have knowingly made false or misleading statements in connection with an application for a FHOG or FHOR, you may be prosecuted and penalties of up to $20,000 may apply.

If you fail to reside in the property for six continuous months commencing within 12 months of completion of the eligible transaction, you may be required to repay the FHOG with penalties and other costs. This may also result in a duties tax liability as you may therefore not be eligible for the FHOR.

Where you are dissatisfied with the Commissioner’s decision on an application, you may lodge a formal objection against the decision.

A person who qualifies for a FHOG, or a person who would qualify for a FHOG had the transaction been an eligible transaction, or is an Indian Ocean Territory resident, may be entitled to a FHOR of duty on the transfer, or agreement to transfer (i.e. the contract for sale), in respect of the acquisition of the home or vacant land. For further information on the FHOR, please refer to the First Home Owner Rate of Duty Fact Sheet.