How much is the first home owner grant in WA?

Buying your first home in Western Australia? You could be eligible for financial assistance via the first home owner grant. Read on to find out more about the first home owner grant in WA.

What is the first home owner grant?

The first home owner grant, or FHOG, was introduced across Australia in 2000 to help first-time buyers with the costs of purchasing or building a home to use as their main residence. The grant is a one-off payment, with eligibility criteria and payment amounts varying from state to state.

How much is the FHOG in Western Australia and what type of property can I buy?

In Western Australia, first home owners buying or building their first home can apply for a grant of up to $10,000. To be eligible for the FHOG in Western Australia, the total value of the home must be below the following cap amounts:

• $750,000 for properties located south of the 26^th parallel (this includes Perth)
• $1,000,000 for properties located north of the 26^th parallel

Importantly, the FHOG only applies to brand new homes. This means that buyers of existing homes are no longer eligible for the grant, but they can apply for the First Home Owner Rate of Duty (FHOR of duty). An additional “boost” payment of $5000 may also apply if the contracts for the sale were signed to purchase or build a new property, or owner-builders laid the foundations, between 1 January and 30 June 2017.

Am I eligible for the FHOG in WA?

You must meet a specific set of criteria to be eligible for the FHOG. If you’re buying with other people, at least one person must be an Australian citizen or permanent resident. Every applicant must also be over the age of 18, though there are some exceptions to the age restriction. To be eligible for the FHOG, you and your partner or spouse must:

• Not have purchased a home in Australia previously
• Not have received the FHOG or FHOR of duty
• Live in the home as your main residence, known as your “principal place of residence” or PPR, for a continuous period of at least six months, starting within the first 12 months of completion.

For the full list of eligibility criteria, read the WA Government’s FHOG Fact Sheet here.

How do I apply for the FHOG in WA and when is the grant paid?

The easiest way to apply for the FHOG is through an “approved agent” – usually, the financial institution providing the loan for your home. They can provide the application form and process your application. You will usually receive your grant payment sooner by applying through an approved agent, as it is typically paid at the date of settlement. There is an alternative if you’re not applying for finance or don’t want to submit your FHOG application through your lender. You can download the form online here and mail it directly to the Office of State Revenue.  In this case, the grant will usually be paid within three to six weeks of the settlement, after you have provided evidence that your name has been registered on the Certificate of Title. For both methods, the application can only be made once the contract to build or purchase the home has been signed and dated by all parties, or when the foundations have been laid for owner-builders. The application must be made within 12 months of completion of the sale.

What is the boost payment for the FHOG in WA?

Eligible first home buyers who entered into a contract to purchase or build between 1 January 2017 and 30 June 2017 may also be eligible for a $5000 boost payment, in addition to the FHOG. Owner-builders who started laying foundations of their home in that timeframe can also apply. To apply for the boost payment, you will need to submit the specific boost payment application form on top of your application for the FHOG. For more information on eligibility and the application process for the boost payment, read the FHOG Fact Sheet here.

What is the First Home Owner Rate of Duty in WA?

First-home buyers who are eligible for the FHOG might also be entitled to the FHOR of duty, which reduces the amount of stamp duty you’re required to pay on a property. You could be eligible for the FHOR if you:

• Qualify for the FHOG
• Would have qualified for FHOG had the transaction cap been eligible
• Are purchasing an established home as your first home
• Are an Indian Ocean Territory resident buying their first home

The FHOR of Duty has two thresholds that carry different rates of duty:

• If the purchase price of the property is $430,000 or less, you’ll pay no stamp duty on the sale.
• If the purchase price of the property is more than $430,000 but less than $530,000, you’ll pay duty of $19.19 for every $100.

If the value of the home exceeds these thresholds, you may be eligible for the residential concessional rate of transfer duty, which you can read about here. This is a general guide to the regulations in WA as at July 2018 and is subject to change. To find out more about the current details of eligibility criteria, visit the WA Department of Finance website or the government’s guide on firsthome.gov.au.