The Australian government has announced a Homebuilder grant. This grant will provide the owners-occupiers a grant of $25,000 for building new homes or renovations in their existing homes. But this grant will be available for only those who have signed the contracts between 4 June 2020 to 31 December 2020.
Some important information for the first home buyers:
Those who are buying or building a new home worth $750,000 are eligible for First Home Owner Grant. And if you are buying this home in regional Victoria, you will get $20,000.
Take a look at the exemptions and concessions in this grant:
- Young Farmer’s exemption/concession.
- First-home owner with family exemption/concession (up to $200,000).
- Principal place of residence concession (up to $550,000).
- First-home buyer duty exemption/concession (this grant is excluded from the FHOG and can go up to $750,000).
- First-home buyer reduction (up to $600,000).
- Off-the-plan concession.
- Pensioner concession (up to $750,000).
While buying a home in Victoria, you should know that Digital Duties Form is compulsory for all property transfers.
Who is eligible for First Home Owner Grant?
Anyone building a new home can get a $10,000 grant. Your home should not be more than 5 years old and its value should be up to $750,000. You are not eligible for this scheme if you have
- Owned a home in Australia either separately or jointly.
- Received an FHOG in Australia.
- Lived in a home in Australia for more than 6 months and you owned or partly owned that home.
Concessions and exemptions in detail:
In this section of the blog, we are going to talk about the concessions/exemptions in detail. This is very necessary to know about it for your financial benefits.
- Young Farmers Exemption/concession:
- All the farmers who are eligible for this scheme can get it if they are below 35 years and buying new farmland.
- Farmland having a value up to $600,000 can get an exemption from the duties on the first $300,000.
- Those farmlands which have a value between $600,000 to $750,000 can get duty concession.
- You can apply for either the PPR concession of the Young Farmers concession. Choose the one that suits your demands perfectly.
- First-home owner with a family exemption:
- This exemption is for those who have bought their home on or after January 1, 2006, are eligible for this scheme. A complete exemption is available if your property is worth $150,000 and a concession is available if the value of your property is up to $200,000.
- For the pensioners:
- If you are a pensioner, you have to be sure that you can apply for only among the duty exemption, concession, or pensioner exemption. Be careful before you choose one.
- The Principal Place of Residence (PPR) concession:
- This concession is only for those who are living in their homes and they intend to live there for the upcoming 12 months (excluding holidays and other investments).
- Off-the-plan concessions:
- If you are buying an off-the-plan property as your first home, you can get this grant but you must live in that property as your home. The contract must be signed on or before 1 July 2017. This concession reduces the amount from the contract price of your home, the price involved in refurbishment occurring after signing the contract.
- First-home buyer reduction:
- You can get a duty exemption of up to 50% if you have entered a contract on or before 1 July 2017 and the property is worth $600,000. Though it depends on the date when you signed your contract on or after 1 September 2014, you can get up to a 50% concession.
We have given you all the information about getting the grants and concessions if you are a first home buyer.