First Home Owner Grant - General Information

To offset the impact of the introduction of the goods and services tax (GST), the Commonwealth has requested that the States and Territories assist first home buyers through the establishment of the First Home Owner Grant (FHOG).

The broad principles of the first home owners grant are:

If the consideration of the home is less than $7,000 then the grant amount paid to the applicant will equal the consideration.

Additional Grant - General Information

On 9 March 2001, the Commonwealth Government announced an additional $7,000 grant where a first homeowner builds their first home or purchases a new, but previously unoccupied home. On 9 October 2001 the Prime Minister announced variations to the terms and conditions of this additional grant, which ceased on 31 December 2001. As from 1 January 2002 until 30 June 2002 inclusive, the additional grant will be reduced to $3,000.

The conditions for commencement and completion of construction, in relation to comprehensive building contracts, new home purchases, owner builders, and off-the-plan purchases are tabled below:

Additional Grant Amount

$7,000

$7,000

$3,000

Date contract signed/building commencement

9/3/2001 to 8/10/2001

9/10/2001 to 31/12/2001

1/1/2002 to 30/6/2002

Period after contract signed in which construction must commence

16 weeks

26 weeks

26 weeks

Period after commencement that construction must be completed by

12 months

18 months

18 months

Date by which construction must be completed
(Owner builder, Off-the-plan only)

30/4/2003

31/12/2003

30/6/2004

Each State and Territory Revenue Office is responsible for administering both the First Home Owner Grant and the Additional Grant in their respective jurisdictions.

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