This article outlines several grants and initiatives available to first home buyers throughout Australia. Each individual state and territory’s policies and guidelines are also examined.
Government Initiatives
The federal government has implemented numerous incentives over the years designed to attract people to purchasing a home; the most evident being the First Home Owners Grant (FHOG) of $7,000. The FHOG is available to most individuals throughout Australia who are purchasing their first owner occupied property. Each state and territory has its own set of guidelines and price caps designed to limit the availability of the grant to those who need it.
In addition to the FHOG each state and territory may have an additional grant available to individuals building a new property. Construction loan incentives have been designed to increase the number of new properties being built throughout Australia.
Another incentive designed to attract first home buyers to the property market is the stamp duty concession. This incentive waives any stamp duty charges usually applicable for a property purchase. The stamp duty concession is usually capped at a much lower price range to the FHOG.
Following are each state and territory’s individual incentives, concessions and regulations.
NSW
The First Home Plus Scheme is an additional incentive introduced by the NSW government which provides eligible first home buyers with exemptions on transfer duty for properties valued up to $500,000 and concessions on duty for properties valued between $500,000 and $600,000. For individuals purchasing a vacant block of land to build their home on will pay no duty if the land is valued up to $300,000 and will receive concessions if the land is valued between $300,000 and $450,000.
In addition to the FHOG and the First Home Plus Scheme, the NSW government has introduced the Home Builders Bonus (HBB). The HBB was introduced to stimulate the construction of new homes in NSW. The scheme provides exemptions and concessions for purchases of new homes, homes off the plan and purchases of vacant land on which new properties will be constructed. A concession is also available to seniors purchasing a new home as their place of residence. To be eligible for the HBB the value of the vacant land must not exceed $400,000 and a new property must not exceed $600,000.
FHOG cap: $750,000
Transfer Duty Concession cap: $600,000.
For more information on the NSW government’s incentives please visit the NSW Office of State Revenue’s website.
*Please note that the caps refer to the maximum price of the property to be eligible for the corresponding incentive/concession.
VIC
First home owners in Victoria receive an additional bonus to the FHOG when purchasing or constructing new properties. The amount of the bonus will depend on whether the property is located in metropolitan Victoria or regional Victoria. The First Home Bonus (metropolitan properties) provides an additional $13,000 to the FHOG bonus and the Regional Bonus provides an additional $19,500 to the FHOG bonus. Note that these bonuses are only available when brand new properties are purchased or are constructed.
FHOG cap: $750,000
For more information on the VIC government’s incentives please visit the Victorian State Revenue Office’s website.
*Please note that the caps refer to the maximum price of the property to be eligible for the corresponding incentive/concession.
http://www.sro.vic.gov.au/sro/SROnav.nsf/Home+Page/SRO~Home+Page?open
WA
The FHOG cap in Western Australia is slightly different to other states and territories due to the size of the state. Depending on where the property is located, the FHOG is capped at purchases valued at $750,000 for properties located south of the 26th parallel and $1,000,000 for properties located north of the 26th parallel.
In Western Australia, transfer duty is exempt for properties valued $500,000 and under and a concession is available for properties valued between $500,000 and $600,000. The concession refers to a reduced amount of money payable to the government when transferring the title on a property. For more detailed information regarding the concession visit the Western Australian State Revenue website.
FHOG cap: $750,000/$1,000,000
Transfer Duty Cap: $500,000
Transfer Duty Concession Cap: $500,000 - $600,000
For more information on the WA government’s incentives please visit the Western Australia State Revenue’s website.
*Please note that the caps refer to the maximum price of the property to be eligible for the corresponding incentive/concession.
http://www.dtf.wa.gov.au/cms/section.aspx?id=209&linkidentifier=id&itemid=209
QLD
The land transfer concession rates are slightly more complex in Queensland. The concession rate depends greatly on the value of the property. For example, a property worth less than $505,000 will attract a concession of $8,750. A tiered approach is applied to properties with values more than $505,000. For more detailed descriptions please visit the Queensland Government State Revenue’s website.
FHOG cap:$750,000
For more information on the QLD government’s incentives please visit the Queensland Office of State Revenue Office’s website.
*Please note that the caps refer to the maximum price of the property to be eligible for the corresponding incentive/concession.
SA
Currently, there is no cap for properties eligible for the FHOG in South Australia. As with all other states and territories, individuals must meet some basic requirements to be eligible for the FHOG. However, beyond that there are no property price regulations currently in place.
The South Australian government has introduced a First Home Bonus Grant designed to replace any concession on stamp duty. Currently, individuals are eligible for an additional $4,000 if the property is valued at or less than $400,000. For properties worth between $400,000 and $450,000 the bonus is phased out at $8 for every $100 the property is valued at in excess of $400,000.
For more information on the SA government’s incentives please visit the RevenueSA’s website.
http://www.revenuesa.sa.gov.au
NT
On the 4th of May, 2010 the Northern Territory government increased its First Home Owner Concession (FHOC). The FHOC provided a concession for $385,000 of a property’s value. Since the increase, the bonus is now applied to $540,000 of a property’s value and provides a concession of $26,730. Note that this concession is only available to individuals purchasing their first owner occupied home.
Senior, pensioner and carer concessions are also available to individuals purchasing their first homes. For more information refer to the Northern Territory’s Revenue Office website.
FHOG cap: $750,00
For more information on the NT government’s incentives please visit the Territory Revenue Office’s website
*Please note that the caps refer to the maximum price of the property to be eligible for the corresponding incentive/concession.
http://www.nt.gov.au/ntt/revenue/
TAS
A stamp duty concession is available to first home buyers in Tasmania up to and including a total of $4,000 (the First Home Buyer Duty Concession). So, an amount of $4,000 will be deducted off all stamp duty costs associated with the purchase. For example, no costs will be incurred if stamp duty is equal to or less than $4,000. However, the purchaser will be liable for any stamp duty costs above $4,000. This concession is capped at properties with a market value of $350,000.
In cases of vacant land, a concession of up to $2,400 is provided at a capped land value of $175,000.
Note that there is no FHOG cap in Tasmania.
For more information on the TAS government’s incentives please visit the Tasmania State Revenue Office’s website.
ACT
The duty concession provided by the ACT government is based on a value threshold approach. Properties with a market value of less than $422,000 are eligible for the concession. However, the specific concession applied varies depending on the specific value of the property. For more information, visit the ACT State Revenue’s website.
Further to the property value requirements, income eligibility requirements must also be met. For households with 0 dependents for example, the total combined income of the household must not exceed $120,000 over the 1 year period prior to the date of the grant. The threshold increases for every dependent in the household. For more information, visit the ACT State Revenue’s website.
For more information on the ACT Government’s incentives please visit the ACT Revenue Office’s website.
Note that there is no FHOG cap in the Australian Capital Territory.
http://www.revenue.act.gov.au/
Please find below URLs for each state's revenue office website:
