Introduced on July 1, 2000, the First Home Owner Grant is a national plan that is administered by Australian states and territories and funded through the Australian Capital Territory Revenue Office. The grant was established to cancel the effect that the Goods and Service Tax imposes on home ownership.
Under this grant, first home owners who have satisfied the criteria for eligibility are entitled to a payable one-off sum of $7000. In October 14, 2008, the First Home Owner Boost (FHOB) was implemented to bolster the grant amount for qualified first-time home owners.
Under the FHOB, first-time established home buyers who have finalized their contracts from October 14, 2008 until September 30, 2009 will receive an additional $7,000 to raise the grant money to $14,000.
On the other hand, those who built or purchased a home that was built within the specified time period will receive an additional grant of $14,000 to bring their grant total to $21,000.
After that period, the FHOB rates were once again adjusted. Under the new grant scheme, qualified first time buyers who bought established houses from October 1 to December 31, 2009 are entitled to an additional grant of only $10,500 or a $3,500 reduction from the original rate.
Meanwhile, those who built or bought a newly-built house were given a total grant of $14,000 which is 33% lower than the original FHOB rate. The grant reduction was due to the increase in interest rates that were brought about by the global financial crunch.
For information on the first home buyers grant or to apply for a first home loan then click here.
