FIRST HOME OWNER GRANT (FHOG)
If you are buying or building your first new home, you may be eligible to apply for the first home owner grant (‘FHOG’).
The first home owner grant (FHOG) is funded by the Government of Western Australia and administered by the Department of Finance, Office of State Revenue (State Revenue).
First home buyers building or purchasing a new home qualify for the grant. The grant has geographically determined caps on the total value of the home purchase, post-purchase residence requirements, and eligibility criteria for applicants. The intent of the FHOG is to assist eligible persons to buy a residential property for use as their principal place of residence.
First home owners buying or building a new home may apply for a grant of up to $10,000 for the purchase or construction of a new home.
As of 3 October 2015 the FHOG no longer applies to the purchase of an established home. However, first home owners buying an established or new home, or building a new home, may be eligible for the first home owner rate (FHOR) of duty.
There are no income or assets tests to qualify for the FHOG.
The current FHOG applies to new residential dwellings only and does not apply to established homes, vacant land, business premises, holiday houses or minor renovations to an existing home. Where a first home owner purchases a home that has undergone substantial renovations, they may be eligible to apply. Please refer to the Office of State Revenue for more information on substantially renovated homes.
For a contract to build a home, construction must commence within 26 weeks of entering into a building contract and be completed within 18 months after construction commences. For owner builders, construction must be completed by 30 June 2019.
The purchase of a new home ‘off-the-plan’ will only be eligible if construction is completed by 30 June 2019. As with the existing grant, the boost will be paid for homes up to the value of $750,000 (or up to $1 million if the home is located north of the 26th parallel).
An application for the FHOG and/or FHOR of duty can be made once a contract to purchase or build a home has been signed and dated by all parties to the contract and appropriately witnessed or, where the application is made as an owner builder, when the foundations have been laid.
An application must be made within 12 months of completion of the eligible transaction, and may be lodged through an Approved Agent or with the Office of State Revenue.
To be eligible for the FHOG and FHOR of duty, each applicant must occupy as their principal place of residence for a continuous period of at least six month, commencing within 12 month of completion of the eligible transaction