FIRST HOME BUYERS GRANT

As a First Home Buyer it can be confusing as to which grants you may or may not be entitled to and how and when to apply. We have put together this informative guide with links to relevant information and government bodies to inform and assist you. As always if you have any questions please do not hesitate to call or email us.

Your mortgage broker or Banker is also a great source of information on First Home Buyers’ Grants.

an introduction to the first home buyers grant (fhog)

Under Government regulations you may be eligible for the FHOG of up to $15,000.00 if you are buying or building a new home – this includes a house, flat, unit, townhouse, or apartment in South Australia – as long as this will be your principal place of residence. From 13^th February changes to the eligibility criteria regarding previous and current property ownership came into effect.

The FHOG applies to the following eligible properties:

the purchase or construction of a new home (not available for investment properties)
an off-the-plan apartment
a substantially renovated home
a comprehensive building contract or a contract to build a home
owner builders
knock-down rebuild projects (for contracts entered into prior to 13 February 2025)

The FHOG cannot be applied to the purchase of Vacant Land, but may be applied to the cost of construction of a new home.

There are conditions and we have outlined them here;

You must not previously have received a FHOG in Australia
For contracts entered into after 13^th February 2025 you will not be eligible for the FHOG if you or your spouse or domestic partner have owned or had a relevant interest in an Australian residential property. For information regarding contracts entered into prior to 13^th February 2025 please refer to Revenue SA’s website information on Residential Property Ownership in Australia.
You must be an Australian Citizen or Permanent Resident. New Zealand citizens permanently residing in Australia with a Special Category Visa may also apply.
All of the applicants must reside in the property as their principal residence for a continuous period of at least 6 months commencing within 12 months of date of settlement for contracts or the date construction is completed for owner builders or contracts to build.
If you are paying the entire purchase price in cash you would still be entitled to the FHOG
Companies and Trusts are NOT eligible
There are no requirements as to how you use your grant
Each applicant must be 18 years or older
Applications for the FHOG can be made at any time from the commencement of the eligible transaction but must be made within 12 months of the eligible transaction. For example if the FHOG is not approved prior to the settlement of the eligible property it can still be approved and paid by Revenue SA afterwards.

how do i apply for the fhog

The financial institution you are using to purchase the property will be able to apply for the FHOG on your behalf and you will on application be given your UIN (Unique Identifying Number) which you can use for any communication regarding your grant.

If you are not borrowing money to fund the purchase of the property you will need to apply directly to Revenue SA for the FHOG.

If you are buying vacant land to build on, FHOG will be paid as part of your build payments.

Revenue SA LINK – https://www.revenuesa.sa.gov.au/FirstHomeOwnerGrant

how much can i spend on a house and still be eligible?

The criteria for this has changed many times over the past few years and is dependant upon the date of the contract. For contracts entered into after 6 June 2024 there is no property value cap. For contracts entered into prior to this date, please refer to Revenue SA’s website for the relevant property value caps.

any other charges or fees ?

There are a number of state taxes and levies you will need to pay when purchasing a residential property in South Australia and your Conveyancer will be able to advise you of other costs involved in your purchase –

Emergency Services Levy
Council Rates
Land Tax
Stamp Duty
Transfer Registration Fees

Conveyancing fees and Bank charges should also be allowed for.

Your Conveyancer will advise you of your state revenue obligations and entitlements. It is important to know these first and a quote from your local professional Conveyancer will outline all of these. At McKay Business Services we will send you a quote at the time of engagement so that there are no surprises later on.