Peter Costello

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Detail of Additional First Home Owners Grant for New Homes

NO.017

Detail of Additional First Home Owners Grant for New Homes

The eligibility details of the $14,000 grant for first home buyers have been settled in consultation with the States and Territories.

The Government is doubling the original $7000 First Home Owners’ Scheme grant to $14,000 for first home owners who enter into contracts between 9 March 2001 and 31 December 2001 inclusive to build or purchase new but previously unoccupied homes. The $14,000 grant is also available for owner-builders who commence building their home between these dates.

The Government has also taken on board submissions for an extended time period during which building can begin. Recipients of the grant must begin to build within 16 weeks of signing a contract. The contract must also specify a completion date within twelve months of the date of building commencement. These requirements will help ensure that the $14,000 grant provides a targeted, short-term stimulus to the building sector.

This measure, together with recent reductions in interest rates, will stimulate the building sector, including many small businesses, which of course will have flow on benefits to other parts of the economy.

The Commonwealth Government will fund the additional grant to first home buyers, however the First Home Owners’ Scheme will continue to be administered by the States and Territories, as provided under the Intergovernmental Agreement on the Reform of Commonwealth- State Financial Relations.

The attached fact sheet sets out the eligibility details of the $14,000 grant. Further inquiries and applications can be made through State and Territory Revenue Offices.

CANBERRA
23 March 2001

Contact: David Alexander: 0418 210 601

 

FIRST HOME OWNER GRANT

ADDITIONAL $7,000 GRANT FOR NEW HOUSING

What is the additional First Home Owner Grant for new homes?

  • The extended First Home Owner Grant will provide for an additional $7,000 grant, in addition to the existing $7,000 First Home Owner Grant, for the construction or purchase of eligible new homes where the contract is made (or in the case of owner builders where construction starts) between 9 March 2001 and 31 December 2001 (inclusive), provided that the timing conditions outlined below are met.
    • From 1 January 2002, the First Home Owner Grant in respect of new homes will revert back to $7,000.
    • The First Home Owner Grant will remain at $7,000 for eligible first-home buyers who purchase existing homes.
  • All First Home Owner Grants are not taxable.
  • The additional $7,000 grant is an initiative of the Commonwealth Government which is providing funding for the additional grant.
  • Both the existing and additional First Home Owner Grants are administered by the States and Territories.
  • Eligible first home buyers buying or building new homes will receive $14,000 assistance, regardless of their income level, the area in which they are planning to buy or the value of their first home.
    • Where the purchase price of the home or the value of the construction contract is less than $14,000 the applicant will be entitled to a grant equal to the value of the consideration.
      • In the case of owner builders, the consideration includes the purchase price of materials used in the construction of the home and/or the value of any sub-contracts for work on the construction (but not the value of the owner’s labour).

What is a new home?

  • Only new housing purchases and constructions are eligible for the additional $7,000. Where a newly completed home is being purchased, it must be the first sale of that home. The home must have never been previously occupied as a residence, including occupation by the builder, a tenant or other occupant.
      • The purchaser must have proof, such as a statement from the vendor or other evidence, that the property meets these requirements.

    Are you eligible for the additional $7,000?

    • To be eligible for the additional $7,000 grant you must satisfy all of the requirements for the existing $7,000 First Home Owner Grant (which commenced on 1 July 2000) and the additional requirements below. Please refer to information provided by your State or Territory Revenue Office for details of the existing $7,000 grant.
    • You are eligible for the additional $7,000 grant if you enter into a contract to buy or build a new home (as defined above) between 9 March 2001 and 31 December 2001 (inclusive).
        • Construction of the home must commence within 16 weeks of entering into the contract.
        • The contract must specify a completion date within twelve months of the date of commencement. (The grant may be approved if the completion date is not specified in the contract but completion occurs within twelve months of the commencement date.)
      • If you are an owner builder you will be eligible for the additional $7,000 grant if you:
        • commence building between 9 March 2001 and 31 December 2001 (inclusive); and
        • complete construction by 30 April 2003.
      • If you purchase a new home, "off-the-plan" you will be eligible for the additional $7,000 grant if:
        • the contract to purchase is entered into between 9 March 2001 and 31 December 2001 (inclusive); and
        • the contract provides for completion of construction by 30 April 2003.
      • Home purchases and constructions which do not meet these time frames may nevertheless qualify for the existing $7,000 First Home Owner Grant.

      How to apply?

      Applications for the First Home Owner Grant can be made through financial institutions or State or Territory Revenue Offices. Further inquiries can be made to the following numbers and the related websites will be updated as additional materials, such as application forms, become available:

      23 Mar 2001

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