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 fully funded by
the West Australian Government and administered by the Office of State Revenue
First homeowners purchasing or building a new home may be eligible to receive a
grant up to $10,000.
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 information about the first home owner grant.
How people can apply for the first home owner grant,
who is eligible for the first home owner grant,
cap amounts, residence requirements,
legal implications, first homeowner 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 owner grant?
People can get the application forms from an approved agent,
from the Office of State Revenue website.
Banks and other lenders are what we refer to as approved agents,
and there is a list of approved agents available on the Office of State Revenue website.
People can apply for the first home owner grant
once a contract to purchase or build a home has been signed
and dated by all parties to the contract and appropriately witnessed.
If you're an owner builder
the application and can be made after the foundations have been laid.
An application for the first home owner grant must be made
within 12 months of completion of the eligible transaction
and can be lodged through 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 eligibility criteria
available on the Office of State Revenue website
that explains the specific conditions applicants must satisfy
in order to qualify for the first home owner grant.
Oh okay, can you give us a couple of examples?
Sure.
To be eligible for the grant
applicants need to be an actual person,
over 18 years of age
and at least one of the applicants must be an Australian citizen or permanent resident.
However if an applicant and/or their partner owned a residential property
or investment property anywhere in Australia
before the 1st 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's best to carefully read the full list of eligibility criteria
or contact the Office of State Revenue for more information.
Is there a cap amount on how much a property can be worth?
Yes there is.
If the property is located south of the 26 parallel of south latitude,
the cap amount is $750,000
and if the property is located north of the 26 parallel of south latitude
the cap amount is $1,000,000.
Okay is there anything else we should know?
Yes. It's very important to know
that in order to be eligible for the first home owner grant
each applicant must occupy the home
as their principal place of residence for a continuous period of at least six months,
commencing within 12 months of completion of the eligible transaction.
An eligible transaction is a contract for the purchase of the home,
a contract to build a home
or construction of a home as an owner builder
that does not exceed the cap amount I mentioned earlier.
Okay what does principal place of residence mean?
Principal place of residence is the place where you live.
In certain circumstances this can be a complex topic
and for more information,
you should refer to Commissioners Practice FHOG 2.1
which is available on our website
and specifically outlines principal place of residence
for the purposes of the first home owner grant.
If you are unable to satisfy the residence requirement
you must notify the Commissioner of State Revenue in writing.
For more information people can refer to the first home owner grant fact sheet.
So say I'm a first home buyer
and I'm not sure if I'm eligible for the first home owner grant,
can I just lodge an application and see what response I get back ?
No it's really important to note
that the application form once submitted is a legal document
and it is actually an offense under the FHOG Act 2000
to provide false or misleading information.
If you're found doing so you could be prosecuted
or face a court imposed fine of up to $20,000.
Okay, so it's important that I check first whether I'm eligible before applying.
Yes that's right.
When purchasing a home and/or land the buyer is liable for transfer duty.
Transfer duty may be described as a general revenue 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 unencumbered value of the dutiable property
does not exceed certain thresholds.
As of the 3rd of July 2014
the first home owner rate of duty applies to a dutiable transaction
with an unencumbered value of up to $530,000 for a home
or $400,000 for vacant land.
If the property includes a home as of the 3rd of July 2014
and the dutiable value of the home is $430,000 or less
there is no duty payable.
If the dutiable value is between $430,001 and $530,000
duty is charged at a concessional rate for first home buyers.
For vacant land with the dutiable value of $300,000 or less
no duty is payable.
If the dutiable value is between $300,001 and $400,000
duty is charged at a concessional rate for first home buyers
So if you're buying or building your first home
and you think you may be eligible for the first home owner grant
you can access further information at
www.finance.wa.gov.au
or call the first home owner grant enquiry line on 08 9262 1299.
Thanks for watching see you next time.
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