Change eventually comes to all good things in life… and right now, the first home owners grant is at the receiving end. Just when you thought you had your post-EOFY numbers crunched, the government has gone and issued a raft of updates to the FHOG — starting with its very name!
Here’s everything you need to know about the changes taking place to new home owners grants in your State or Territory.
(And you’d better listen up, because some are just a few short weeks away.)
New South Wales
New Home Grant Scheme
From 1 July 2012, $5,000 was made available to buyers of new homes valued up to $650,000, and to buyers of vacant land that is intended to be the site of a new home (valued up to $450,000). This grant is aimed at all non-first homebuyers and is also available to investors and owner/occupiers.
First Home Owner Grant (New Homes) Scheme
From 1 October 2012, this new entitlement will replace the old First Home Owner Grant Scheme. It will only apply to first homeowners who have purchased or built a new home valued at up to $650,000.
Note that the grant will further increase from $7,000 to $15,000 from 1 October 2012 to 31 December 2013, and to $10,000 from 1 January 2014.
Furthermore, first home buyers purchasing an existing home (previously lived in) will not be eligible for any grant from October 1 2012.
First Home – New Home
From 1 July 2012, the transfer duty exemption cap on new homes increased to $550,000 with duty concessions for new homes valued between $550,000 and $650,000. The transfer duty exemption cap on vacant land also increased to $350,000 with duty concessions for vacant land valued between $350,000 and $450,000.
ACT, VIC, QLD, WA
First Home Owner Grant
All first home buyers in the ACT, Victoria, Queensland and Western Australia can receive $7,000 towards the purchase of their first home up to the value of $750,000.
The $10,000 BuildBonus grant that was introduced in May 2011 to stimulate construction of affordable new homes and units has been extended to 31 December 2012.
First Home Owner Grant
This scheme will continue to provide $7,000 to first home buyers, purchasing their first home up to the value of $575,000.
Remember, laws change constantly.
If you or someone in your family is considering buying a new home or property, do your homework now. It could put an extra $15,000 in your pocket.