What is the First Home Owner Grant?

FOR those on a tight budget,  it’s worth remembering that anyone buying a house in Australia for the first time – including migrants with a permanent residence visa -  is eligible for the First Home Owner Grant, a lump sum worth $7,000.

The First Home Owner Grant is paid directly to the buyer of a house in all Australian states. The grant is not payable for land purchases. In New South Wales, Victoria, South Australia, Queensland, and most of Western Australia there is a house price cap of $750,000 for properties eligible to receive the grant.

Each individual state offers incentives in addition to the First Home Owner Grant, for example First Home Buyers in NSW and WA are exempt from paying stamp duty on house purchases of up to $500,000.

In Queensland, first home buyers in regional areas, which excludes Brisbane and surrounding outer suburbs, can receive a $4,000 regional bonus. First time buyers of homes costing less than $505,000 can also receive a reduction of $8,750 on stamp duty – the First Home Concession.

In South Australia first home buyers are eligible for a First Home Bonus Grant (FHBG) of up to $8,000. A FHBG of $8,000 is available for first home purchases with a market value of up to $400,000, reducing to zero grant for properties of $450,000 or more.

“Stamp duty on the purchase is a major cost for many buyers,” Ken Regan from Australian Homebuyers International says.

“When you buy a house, you will have to pay tax on the purchase price.
“First time buyers in New South Wales, Queensland and Western Australia may get a discount on stamp duty.
“The rate paid depends on the house price. Each Australian state levies stamp duty at different rates.”

For more information about government grants and stamp duties in different States call Ken Regan on +44 207 060 0066   www.ahinternational.net.au