First Home Buyer’s Grant Eligibility Basics

The first home buyer’s grant, while sponsored by the federal government, is issued through each state. While states can differ in some eligibility rules for the first home owner’s grant, there are some conditions that must be satisfied regardless of the state where you’re purchasing your first home. Those rules include:

1. You must be an Australian citizen or permanent resident.

2. No one involved in the home purchase may have claimed the first home buyer’s grant previously.

3. The first home owner’s grant is only available to individuals (joint applications, such as spouses, are allowed), and is not available to corporations or other entities purchasing property.

4. The property being purchased must be the first residence owned by the individual or joint applicants making the purchase.

5. You are required to use the property as your principal place of residence (you cannot receive the first home buyer’s grant when purchasing investment properties). You also must make the property your place of residence within a year of its construction for new homes.

6. You may not have owned property in the past that was used as your residence (this includes owning property in a spouse’s name, if married).

7. You must have already entered into a contract of sale for the property, or a contract to have a new home built.

Due to the fact that you have to apply for the first home owner’s grant through your individual state instead of the local government, the states have some leniency in certain rules. For example, each state will determine the age requirements for eligibility for the grant, how many of the applicants must be Australian citizens, and how long you are required to maintain residence in the property.

Some states even offer their own supplemental grant programs or other benefits for first-time home buyers to help lessen the burden of the stamp duty. To find out your state or territory’s specific rules or state benefits, you should check with the Office of State Revenue, Department of Treasury and Finance, or similar government office. You should also contact your state’s Revenue Office to obtain an application for the first home buyer’s grant. Only one application is needed, even if there are joint applicants.

Article correct at its author date: June 2008. Copyright Virtual Office Space, Any unauthorised reproduction of this article will be prosecuted to the full extent of the law. Credit Cards Australia.

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