If you are buying or building your first home,you may be eligible for the first home owner grant.
The first home owner grant scheme is fullyfunded by the Western Australian Government and administered by the Office of State Revenue.
First home owners purchasing or building anew home may be eligible to receive a grant up to ten thousand dollars.
The first home owner grant is not means tested;there is no income test, but if you or your partner have owned residential property before,you may not be eligible for the first home owner grant.
This video will cover certain key informationabout the first home owner grant; how people can apply for the first home ownergrant, who is eligible for the first home owner grant,cap amounts, residence requirements,legal implications, first home owner rate of transfer duty,and where you can find further information.
To learn more about the first home owner grant,I spoke with Adrian from the Office of State Revenue.
How can people apply for the first home ownergrant? People can get the application forms froman Approved Agent, or from the State Revenue website.
Banks and other lenders are what we referto as Approved Agents, and there is a list of Approved Agents available on the Officeof State Revenue website.
People can apply for the first home ownergrant once a contract to purchase or build a home has been signed and dated by all partiesto the contract and appropriately witnessed.
If you’re an owner-builder, the applicationcan be made after the foundations have been laid.
An application for the first home owner grantmust be made within 12 months of completion of the eligible transaction and can be lodgedthrough their bank or lender, or with the Office of State Revenue.
Who is eligible for the first home owner grant? There is a comprehensive list of eligibilitycriteria available on the Office of State Revenue website that explains the specificconditions applicants must satisfy in order to qualify for the first home owner grant.
Can you give us a couple of examples? Sure.
To be eligible for the grant, applicants needto be a natural person, over eighteen years of age, and at least one of the applicantsmust be an Australian citizen or permanent resident.
However, if an applicant and/or their partnerowned a residential property or investment property anywhere in Australia before the1st of July 2000, they are not eligible for the first home owner grant.
What about after the 1st of July 2000? Well that depends on a few factors.
They may be eligible for the grant, but it’sbest to carefully read the full list of eligibility criteria or contact the Office of State Revenuefor more information.
Is there a cap amount on how much the propertycan be worth? Yes there is.
If the property is located south of the 26thparallel of South Latitude, the cap amount is seven hundred and fifty thousand dollars,and if the property is located north of the 26th parallel of South Latitude, the cap amountis one million dollars.
Is there anything else we should know? Yes, it’s very important to know that inorder to be eligible for the first home owner grant, each applicant must occupy the homeas their principal place of residence for a continuous period of at least six months,commencing within twelve months of completion of the eligible transaction.
An eligible transaction is a contract forthe purchase of a home, a contract to build a home or construction of a home as an ownerbuilder that does not exceed the cap amount I mentioned earlier.
What does principal place of residence mean? Principal place of residence is the placewhere you live.
In certain circumstances, this can be a complextopic and for more information, you should refer to Commissioner’s Practice FHOG 2,which is available on our website, and specifically outlines principal place of residence forthe purposes of the first home owner grant.
If you are unable to satisfy the residencerequirement you must notify the Commissioner of State Revenue in writing.
For more information, people can refer tothe First Home Owner Grant fact sheet.
So, say if I’m a first home buyer and I’mnot sure if I’m eligible for the first home owner grant, can I just lodge an applicationand see what response I get back? No, it’s really important to note that theapplication form, once submitted, is a legal document, and it is actually an offence underthe FHOG Act 2000 to provide false or misleading information.
If you’re found doing so, you could be prosecutedor face a court imposed fine of up to twenty thousand dollars.
So it’s important that I check first whetherI’m eligible, before applying? Yeah, that’s right.
When purchasing a home and/or land, the buyeris liable for transfer duty.
Transfer duty may be described as a generalrevenue tax, which is imposed under the Duties Act 2008 on various dutiable transactions,including transfers of real estate.
When a home buyer qualifies, or would qualify,for the first home owner grant, a concessional rate of transfer duty may apply if the unencumberedvalue of the dutiable property does not exceed certain thresholds.
As of 3rd of July 2014, the first home ownerrate of duty applies to a dutiable transaction with an unencumbered value of up to $530,000for a home, or $400,000 for vacant land.
If the property includes a home, as of 3rdof July 2014, and the dutiable value of the home is four hundred and thirty thousand dollarsor less, there is no duty payable.
If the dutiable value is between four hundredand thirty thousand and one dollar, and five hundred and thirty thousand dollars, dutyis charged at a concessional rate for first home buyers.
For vacant land with a dutiable value of threehundred thousand dollars or less, no duty is payable.
If the dutiable value is between three hundredthousand and one dollar and four hundred thousand dollars, duty is charged at a concessionalrate for first home buyers.
So if you’re buying or building your firsthome, and you think you may be eligible for the first home owner grant, you can accessfurther information, at www.
Au or call the first home owner grant enquiryline on 08 9262 1299.
Thanks for watching.
See you next time!.