First Home Owner Grant (FHOG) South Australia

The First Home Owner Grant (FHOG) is paid by the State Government to eligible first home owners. The payment is made only after an application has been submitted to and approved by RevenueSA or a financial institution authorised by RevenueSA to process applications.

FHOG applies to the purchase or construction of a new residential property, including a house, flat, unit, townhouse or apartment that meets local planning standards anywhere in South Australia. FHOG ceased for established homes from 1 July 2014.

The residential property must be occupied as each applicants principal place of residence property for a continuous period of at least six months commencing within 12 months of date of settlement for contracts to purchase, or the date construction is completed for owner builders or contracts to build.

How much is FHOG?

The amount of FHOG payable is determined by the date the contract to purchase or build a home is entered into, or the date on which construction commenced for owner builders.

The table below outlines the current grants and concessions available:

^# For eligible transactions  entered into
It should be noted that if the consideration for the purchase of the property is less than the FHOG and/or additional schemes (e.g. where a property is inherited), the amount of FHOG will not exceed the consideration.

The First Home Buyers Grants Table  outlines the maximum payment available, incorporating the First Home Bonus Grant (FHBG), First Home Owners Boost (FHOB) and the stamp duty First Home Concession (FHC) schemes.

*NEW HOME  means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home (see definition of terms  page).

• EXAMPLE 1
  Mark enters into a contract on 22 February 2015 to build a new home. The contract specifies a construction price of $235 000. The market value of Mark’s land at the time of build contract execution was $250 000 (resulting in a total market value of $485 000).
  As Mark’s building contract was executed after 14 October 2012 and the market value of his property does not exceed $575 000, a $15 000 FHOG is potentially available, provided that all other eligibility criteria are satisfied.

• EXAMPLE 2
  Jo entered into a contract on 10 June 2014 to purchase an established home. The purchase price was $400 000.
  As Jo’s contract was executed prior to 1 July 2014 and the market value of her property does not exceed $575 000, a $5000 FHOG is potentially available, provided that all other eligibility criteria are satisfied.

• EXAMPLE 3
  Helen entered into a contract on 5 March 2015 to purchase an established home. The purchase price was $420 000.
  As Helen’s contract was executed after 30 June 2014, no FHOG is available.

• EXAMPLE 4
  Brooke enters into a contract to purchase a new home on 10 June 2015. The home has never previously been occupied or sold as a place of residence. The purchase price is $575 000.
  As Brooke’s purchase contract was executed after 14 October 2012 and the market value of her property does not exceed $575 000, a $15 000 FHOG is potentially available, provided that all other eligibility criteria are satisfied.

• EXAMPLE 5
  Daniel enters into a contract to purchase a new home on 28 April 2015. The home has never previously been occupied or sold as a place of residence. The purchase price is $620 000.
  As the market value of Daniel’s property exceeds $575 000, no FHOG is available.

• EXAMPLE 6
  Zack enters into a contract to purchase a new home from his uncle on 1 January 2015. The home has never previously been occupied or sold as a place of residence. Due to the nature of their relationship, Zack’s uncle agreed to a purchase price of $10 000.
  As Zack’s purchase contract was executed after 14 October 2012 and the market value of his property does not exceed $575 000, a $10 000 FHOG is potentially available, provided that all other eligibility criteria are satisfied. The amount of the FHOG is less than $15 000 because it cannot exceed the consideration paid.

What are the eligibility requirements?

1. At least one of the applicants must be an Australian citizen or have permanent residency in Australia. New Zealand citizens permanently residing in Australia who hold Special Category Visas may also apply.
2. The applicant(s) or their spouse(s)/domestic partner(s) must not have previously owned a residential property anywhere in Australia prior to 1 July 2000.
3. The applicant(s) or their spouse(s)/domestic partner(s) must not have owned a residential property anywhere in Australia on or after 1 July 2000 and occupied that property continuously for six months or more.
4. All applicants must occupy the home purchased or built as their principal place of residence for a continuous period of at least six months commencing within 12 months after completion of the eligible transaction.It is the responsibility of the applicant(s) to satisfy the Commissioner that they have meet the residency requirements. Applicants may be required to verify this later by providing documentation supporting their period of occupancy (e.g. electricity and gas accounts, bank statements, landline and/or mobile phone accounts and household contents insurance policies).Applicants who do not meet the residency requirements must contact RevenueSA in writing within 14 days of the date on which it first became apparent that the residency requirements would not be complied with, and repay the grant.
5. Each applicant must be a natural person (i.e. not a trustee or company) except in the cases of legal disability.
6. Each applicant must be at least 18 years of age at the time of making application for the FHOG.
7. The property purchased has a market value of $575 000 or less.A property value cap applies to applicants who entered into a contract to purchase or build a home on or after 17 September 2010, or who commence construction as owner builders on or after 17 September 2010. The property value cap is $575 000 and applies to the market value of the property purchased or built.In the case of a contract to purchase a home the market value is:

• the consideration for the purchase of the home; or
• where the consideration is less than market value, the market value of the property.

In the case of a comprehensive building contract the market value is:

• the sum of the consideration for the building contract and the market value of the property on which the home is to be built as at the time the contract is made; or
• where the consideration for the building contract is less than actual costs, the sum of the actual costs to build the home and the market value of the land on which the home is to be built as at the time the building contract is made.

In the case of an owner builder the market value is:

• the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.

NOTE: in the cases of a genuine farm the market value of the property will be determined on the value of the home and curtilage area of that part of the land that is to constitute the site and curtilage of a home that is to be built on that site.

How do I apply?

Applicants can complete and lodge the appropriate application form with either an Approved Agent  or RevenueSA. You can complete and lodge the application form with the financial institution providing your finance as part of buying or building your home, if they are an approved agent.

Applications need to be made within 12 months of completing the transaction.

For further information, please visit the official How to Apply for FHOG, our property and investment finance page  or contact Finance Prospects now by clicking here.

*All information contained in this article originally from the South Australian Government  website