The FHOG provides one-off grants to first-time home buyers. They are funded by the states and territories, who each have their own laws governing them. Many states and territories also give stamp duty concessions to first home buyers.
Over time, successive state and territory governments have changed the amounts of money available and the eligibility criteria. As a result, the grants and tax breaks vary depending on where you live. Most are now aimed squarely at people buying newly built houses, but there are exceptions. The Northern Territory, for example, offers up to $23,000 in stamp duty relief for first home buyers purchasing an established home valued at up to $650,000.
There can be variations even within a state or territory. For instance, the Victorian Government recently announced that they will be increasing the FHOG from $10,000 to $20,000 for newly built homes in regional Victoria that are valued up to $750,000. The changes will apply to contracts signed between 1 July 2017 and 30 June 2020. For eligible first home buyers in Melbourne, the FHOG will stay at $10,000.
Last year, the Queensland Government boosted the FHOG to $20,000 for people building or buying a new home for the first time. But after midnight on 30 June 2017, the grant reverts back to $15,000. In addition to the grant, first-time buyers in Queensland receive a full stamp-duty exemption on homes valued up to $500,000; on homes priced between $500,000 and $549,000 the exemption is calculated on a sliding scale.
For more details on the first home owner grants and stamp duty concessions available where you live, go to: www.firsthome.gov.au.