It can be hard for first time buyers to get a foothold on the home ownership ladder, but take heart – there are various government grants and concessions that can help offset some of the expenses when getting started.
Before you start searching for your dream home, take some time to learn more about these benefits. If you’d like an explanation on any government incentives give your mortgage broker a call.
First Home Owner Grant
First home buyers across Australia may be eligible for the Federal Government’s First Home Owner Grant (FHOG) which is a one-off, tax-free $7,000 gift from the Government. As long as you’re a first time buyer above 18 years of age, and an Australian citizen or permanent resident, you’ll most likely be eligible for the grant.
The grant is administered by each state and can differ depending on each state’s respective legislation. For example, in Victoria first time buyers can also benefit from the First Home Buyer Bonus of $2,000 for established homes and $11,000 for new properties. Both apply for properties below $600,000.
For more information on the FHOG in your state visit www.firsthome.gov.au or speak with your mortgage broker.
Stamp duty breaks and concessions
Australia’s State Governments have introduced breaks for the stamp duty associated with a property purchase.
Stamp duty is a tax applied to certain property transitions. When land is sold, transferred or leased, for example, stamp duty is generally payable. It is usually the buyer, not the seller, who is liable to pay stamp duty. Payment must generally be made within three months of entering into the contract for purchasing the property.
The amount of stamp duty payable depends on the value of the property and the amount for which it is sold, transferred or leased. It is calculated on its market value or the price paid by the buyer. Each State Government has its own rules surrounding stamp duty on property purchases. For this reason, the exemptions and concessions available differ from state to state.
Generally, however, first home buyers, vacant land holders, and farm buyers may be entitled to some exemption or discount on stamp duty. So it pays to check out whether any apply to you through contacting the revenue office in your state or territory.
Note: Details are current as at print date and should be confirmed with your local Office of State Revenue or equivalent body.
Need more information?
For further information on the First Home Owner Grant or details on stamp duty breaks contact your state’s relevant government office.
- ACT – www.revenue.act.gov.au
- NSW – www.osr.nsw.gov.au
- NT – www.nt.gov.au/ntt/revenue
- QLD – www.osr.qld.gov.au
- SA – www.revenuesa.sa.gov.au
- TAS – www.sro.tas.gov.au
- VIC – www.sro.vic.gov.au
- WA – www.osr.wa.gov.au
Source: Professional Lenders Association Network of Australia Pty Ltd