The Prime Minister announced an extension of the First Home Owners Grant (FHOG). The revised FHOG will provide the following incentives:
The cost of expanding the FHOG is estimated to be $1.5 billion for the housing market over 2008-2009 and 2009-2010.
1. Must meet the current eligibility requirement that currently apply for the First Home Owners grant:
This is the same time period which was in place for the additional FHOS grant in 2001-02 and will allow first home buyers reasonable time to construct the new dwelling.
For all established home purchases, the application must be lodged within 12 months of the completion of the transaction. The 12 month period is the time limit imposed by State legislation enforcing the current FHOS.
COMMON Q & As
Q: When does the revised FHOG start?
A: It will operate between 14 October 2008 and 30 June 2009.
Q: What is the definition of new build? Is it something that has never been lived in before?
A: YES, the home can not have been occupied.
Q: What if I buy an off the plan home? Is this considered a newly constructed home?
A: YES, if the home has never been sold before nor previously occupied by any person.
Q: Do townhouses/units/apartments qualify?
A: YES. The home must be a fixed building suitable for use as a place of residence. This includes a house, flat, unit, townhouse or manufactured homes. Houseboats and caravans are not eligible.
Q: Does this mean that the sale of unsold new stock, completed prior to 14 October, counts as new build?
A: YES
Q: How are first home owner builders treated? Can they access the grant now?
A: Building work must commence (not finish) between 14 October 2008 and 30 June 2009. Laying of foundation is considered the commencement of building work. There will be time limits to build. If you apply through an agent (bank etc) then you will receive the grant at settlement. Otherwise, it will usually be within 14 days of applying for the grant with the Office of State Revenue in your jurisdiction.
Q: What are the time limits for the construction of a new home?
A: The contract must be signed by 14 October 2008 and 30 June 2009. The building must commence (laying of foundation) within 24 weeks of contract date. Building must be completed within 18 months of commencement of building.
Q: What if the home is not constructed within 18 months? Is there an appeals process?
A: In most circumstances 18 months is a generous amount of time to complete construction. If it is not completed within 18 months then the applicant would have to provide reasons why and ask for the Commissioner of State Revenue to exercise his discretion to allow.
Q: What if I have owned vacant land? Will this mean I can't receive the revised FHOG?
A: NO, vacant land is not regarded as residential property for the first home owners grant.
