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Western Australia is providing an opportunity for many first-home buyers to enter the housing market sooner with its own First Home Owner Grant (FHOG).
If you are exploring the state for your future home, you might want to check out how you can take advantage of the grant to achieve your homeownership goals.
What is the Western Australian First Home Owner Grant?
FHOG provides a one-off payment to aspiring first-home buyers to assist them in buying or building a new residential property. It is introduced at a federal level to offset the effect of the GST on home ownership.
While FHOG is a national scheme, each state is responsible to fund and administer the program — in Western Australia’s version of the grant, first-home buyers can be provided with a $10,000 grant that they can use towards buying or building a new home in the state.
How to qualify for the grant?
To be eligible for the grant, you must make sure that you are able to meet a specific qualification based on your age, citizenship, and property transaction.
Since the grant is not means-tested, no income requirement is needed to apply.
Still, you will need to meet these criteria to be considered for the Western Australian FHOG:
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You must be 18 years or over at the time of making the application. If you are under 18, you may be able to still submit an application provided that you also apply for an exemption from the age requirement.
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You must be an Australian citizen or a permanent resident. If you are applying with your spouse, one of you must satisfy the citizenship requirement.
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You must not have previously received the grant or first homeowner rate of duty from any jurisdiction in Australia.
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You must not have owned residential property anywhere in Australia before 1 July 2000.
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You must not have owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence before 1 July 2004.
When you qualify for the grant, you will need to occupy the property as your principal place of residence for a continuous period of at least six months commencing within a year after either the settlement when purchasing or after the completion of the construction of your home.
Check out this tool to know if you are eligible for the grant.
What are the eligible property transactions under the grant?
When applying you will have to make sure that your property transaction is eligible for the grant. You can apply if you are purchasing a new home, getting a contract-to-build, or if you are building your home yourself.
For the purchase of a new home, you will need to apply within one year after the settlement date.
The grant is not available for the purchase of an established home or for renovations to an existing home. However, if you are buying a home that is “substantially renovated”, then you might be able to qualify for the grant.
For contract-to-build and owner-builder transactions, an application must be lodged within one year of the completion of the home.
Regarding the value of the home, the cap on the total value of the home and land varies depending on where the home is located.
For homes in the south of the 26th parallel that covers all of the Perth metropolitan area, the combined value cap for the house and land is set at $750,000.
On the other hand, a cap of $1m is set for homes in the north of the 26th parallel.
How to apply for the First Home Owner Grant in Western Australia
You have two options if you are applying for the FHOG in Western Australia — you can submit your application with an approved agent or lender as you also apply for a home loan or you can directly submit an application to RevenueWA.
Take note of these documentary requirements you need to provide when applying for the grant:
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Supporting evidence of the transaction in the form of:
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Contract to purchase a home
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Contract to build a home
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Certificate of title showing your name as registered proprietors (This applies to owner-builder transactions. When applying through an approved agent, this is not required)
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Application form – Must be submitted with supporting documents via web enquiry or by mail
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On top of the supporting evidence of property transaction and the application form, you will need to submit at least one document from each of the categories below, particularly if you are applying through RevenueWA.
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Category 1: Australian Citizenship and permanent residency
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Australian birth certificate/extract of passport or citizenship certificate.
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Evidence of permanent residency or permanent resident visa or
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Certificate of Evidence of Resident Status, issued by the Department of Home Affairs.
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Category 2: Link between identity and person – This is only required if applying through RevenueWA
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Current Australian driver’s licence or
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Current passport (if not used in category 1)
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Firearms licence
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Proof of Age card (with photo)
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Another identity document that includes a photo.
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Category 3: Australian residence – This is only required if applying through RevenueWA
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Medicare card
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Motor vehicle registration
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Centrelink or Department of Veterans Affairs card
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Debit/credit card from a financial institution
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Similar card or document that shows residence in Australia
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If you are married, separated, divorced, widowed, or using a different name for your application, you will need to provide corresponding evidentiary documents.
When will the grant be paid?
You will be able to get the $10,000 funding depending on your transaction type and your mode of application.
If you are applying through your lender, the timing of the payment will be according to the following:
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Purchase of a new home – At settlement
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Contract to build – After the first progress payment and after your name is registered on the certificate of title.
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Owner-builder – When you provide evidence that the home is ready for occupancy and after your name is registered on the certificate of title
When lodging your application through RevenueWA, you will get the funding when:
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Purchase of a new home – When your name is registered on the certificate of title
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Contract to build – After the first progress payment and after your name is registered on the certificate of title
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Owner-builder – When you provide evidence that the home is ready for occupancy and after your name is registered on the certificate of title
Frequently Asked Questions about Western Australia’s FHOG
Here are some of the most commonly asked questions about Western Australia’s First Home Owner Grant:
Can I use the grant as a home loan deposit?
Yes, but only as part of your deposit. The grant is oftentimes not enough to cover the entire downpayment you need for the home loan. Furthermore, the timing of the grant’s payment might not be ideal especially if you are applying directly through RevenueWA.
Will my income impact my application for the grant?
No, your income will not, in any way, impact your application for the grant. Western Australia’s FHOG is not means-tested and does not have any income-related eligibility requirements.
When applying for the grant with a partner, will each of us be able to receive the grant?
The grant is payable per transaction. This means that two first-home buyers involved with the purchase of a single property will only be eligible for one grant.
Can I still apply for the grant even if I have property overseas?
You will still be eligible for the grant even if you own a property overseas if you have never owned a property in Australia.
Are there any additional incentives or concessions available for first-home buyers in Western Australia?
Yes, on top of the FHOG, you may be eligible for other incentives and concessions, including the First Home Owner Rate of Duty. FHOG can also be combined with existing housing initiatives at the federal level including the Home Guarantee Scheme.
Is there a deadline for applying for the FHOG?
There is no specific deadline for applying for the FHOG in Western Australia. However, your application must be submitted at specific timeframes depending on your property transaction.
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