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First Home Buyers

First Home Buyers
There are various grants, concessions and benefit schemes to assist eligible first home buyers in Australia.
This include:

  1. First Home Owners Grant
  2. Stamp Duty Concession
  3. First Home Saver Account

FIRST HOME OWNERS GRANT

The most well known of these is the First Home Owners Grant, a one-off, tax- free payment of $7,000 to all first home buyers who meet eligibility criteria.

If you answer yes to all these questions, then you may be eligible for the $7,000 grant:

  • Are you a permanent resident or Australian citizen?
  • Is this the first time you have received the grant?
  • You have never purchased a residential property before 1 July 2000?
  • You have never owned residential property, in which you have resided, on or after 1 July 2000?
  • You are applying as an individual, not as a company or a trust?
  • Will you be occupying the property as your principle place of residence within 12 months of settlement?

Your entitlements and the eligibility criteria will vary depending on the state or territory in which you are purchasing. Click on your state or territory below for more information.

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STAMP DUTY CONCESSION

This is a state government tax payable by the purchaser of a property. The amount of stamp duty depends on the purchase price of the property and the state or territory in which you are purchasing.

First home buyers may be exempt from paying stamp duty or entitled to a concession. Click on the state or territory in which you are planning on purchasing to see your entitlements and eligibility.

ACT www.revenue.act.gov.au
NSW www.osr.nsw.gov.au
NT www.nt.gov.au/htt/revenue
QLD www.osr.qld.gov.au
SA www.revenuesa.sa.gov.au
TAS www.treasury.tas.gov.au
VIC www.sro.vic.gov.au
WA www.dtf.wa.gov.au

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FIRST HOME SAVERS ACCOUNT

The first home savers account is a tax effective way for Australians to save for their first home through a combination of Government contributions and low taxes.The federal government will contribute 17% on the first $5,000 (indexed) of individual contributions made each year. This top up from the government is tax free and can boost your savings by up to $850 each year. Interest is taxed at just 15%. Withdrawals from your First Home Saver Account used to purchase or build a first home are tax free.

Eligibility:

  • Aged between 18 and 65.
  • Have not previously purchased or built a first home that you have lived in.
  • Have not previously held a First Home Saver Account.
  • Must supply your tax file number to your account provider.

Restrictions:

  • Savings in the First Home Saver Account can only be used to buy or build a home that you will live in. Within the first 12 months of purchase or on completion of construction, you will need to live in the home for at least 6 months.
  • There is a balance limit of $75,000 (indexed) on the overall account. If the balance is reached, no further contributions can be made.
  • All contributions must be made from after-tax income.
  • Withdrawal can only be made when you have contributed at least $1,000 in each of at least four financial years. An exception is if the purchase of your first home is with another individual(s) who also holds an account. Only one individual needs to meet the four-year requirement.

Who offers First Home Saver Accounts?

The Australia Prudential Regulation Authority (APRA) provides a list of all the institutions that offer First Home Saver Account. Click here for the list (http://www.apra.gov.au/Policy/First-Home-Saver-Accounts-July-2008.cfm)

Want more information?

To find out more go to the First Home Saver Account Website (http://www.homesaver.treasury.gov.au/content/default.asp)

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