The First Home Owners Grant (FHOG) – New South Wales

Posted in Wealth
28/09/2012 Level One

First time buyers of new property in NSW may receive grants and stamp duty exemptions worth up to $35,000 from 1 October 2012; thus providing an opportunity to enter the property market.

With a cash grant of $15,000 and stamp duty exemption of up to $20,000 it is currently possible for first time buyers with a modest deposit savings to become property owners.

There are two components to the concessions:


First Home Owner Grant (FHOG)

From 1 October 2012, first home buyers purchasing new residential property below $650,000 are eligible to receive a Government grant of $15,000 upon settlement.

First home buyers purchasing second hand properties are no longer eligible to receive a grant of any amount.

The FHOG will decrease to $10,000 from 1 January 2016.

What is a new home?

A new home is:

  • A home that has not been previously occupied, including occupation by the builder, a tenant or other occupant.
  • A home that has not been previously sold as a residence. Where the home is being purchased, it must be the first sale of that home
  • A home that has been substantially renovated and a home built to replace demolished premises.

Am I eligible?

To be eligible for the $15,000 grant:

  • The contract date must be on or after 1 October 2012;
  • The home is a brand new home;
  • You are over 18;
  • You or your spouse (including de facto spouse) have never held a relevant interest in any residential property in Australia prior to 1 July 2000. However, you may be eligible if you or your spouse, including de facto spouse, have only had a relevant interest in any residential property in Australia on or after 1 July 2000 and you have not resided in that property for a continuous period of at least 6 months;
  • The value of the property must not exceed the First Home Owner Grant Cap of $650,000;
  • You have not received a first home owners grant in any State or Territory, unless subsequently repaid;
  • You need to live in the home for a continuous period of at least 6 months;
  • At least one applicant is a permanent resident or Australian citizen;
  • Each applicant must be a natural person and not a company or trust.


First Home Stamp Duty Exemption

From 1 October 2012 first home buyers purchasing new property below $550,000 or vacant land below $350,000 will be exempt from paying stamp duty.

First home buyers purchasing new property from $550,000 to $650,000 or vacant land from $350,000 to $450,000 will be eligible to receive discounts on stamp duty.

Stamp duty concessionPurchase priceProperty type
Exemptup to $350,000Vacant land to build
Exemptup to $550,000New only
Discount*$350,000 to $450,000Vacant land to build
Discount*$550,000 to $650,000New only

* Stamp duty discounts are calculated based on purchase price. For each additional $1,000 in cost above the stamp duty exemption threshold the full exemption will be reduced by 1%. Example: a new home purchased for $560,000 ($10,000 above threshold) would receive a 90% discount on the applicable stamp duty.

If you are looking to become a first home owner and want some clear and unbiased advice about your options here contact us.


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