- The current $7,000 FHOS is administered and funded by the States and Territories.
- The Commonwealth will provide funds to the States and Territories for the First Home Owners Boost, which is the additional $7,000 for established homes and $14,000 for newlyyconstructed homes.
- The Treasurer is writing to the State and Territory Treasurers seeking their assistance to administer the FHOB.
- The Commonwealth Government will set up appropriations to provide funds to the States to cover the expenditure associated with the additional grants (that is, the additional $7,000 for established homes and $14,000 for newly-constructed homes).
Eligibility
The eligibility criteria for the FHOB is the same as for the FHOS. That is, in general, the following must be met:
- Applicants must be 18 years of age or over;
- Both the owner and their spouse/partner must not have owned a home previously (this means that if either one of the applicants have previously owned a home, then they will both be ineligible);
- The home must be the principal place of residence for at least one applicant for a period of 6 months within 12 months of completion or settlement.
- Eligible first home owners have 12 months from either the date of settlement or date of completion to apply for the FHOS.
Eligibility for FHOB:
Eligible applicants must purchase a home between 14 October 2008 and 30 June 2009.
- For established homes, this means entering into a contract to buy (referred to as exchange);
- For newly-constructed homes, this means entering into a contract to build a house. The contract must be for building to commence within 6 months and must be completed within 18 months of commencement.
Payment
- For a newly established house, the FHOS (and FHOB) is paid (in a lump sum) to the first home buyer upon completion, that is, when a certificate of occupancy is provided.
- For an established house, the FHOS (and FHOB) is paid (in a lump sum) upon settlement (ie when the conveyance is completed).
- The grant can be paid directly into the first home buyers account.
About The Author
Warren Kruger is an Australian Tax Specialist and Advisor.
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Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report “7 Essential Strategies to Reduce Your Taxation NOW!”,enter your name and email address in the Opt In Box located on the top right hand side of this article.
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