The Australian Government first introduced the First Home Owner Grant (FHOG) in July 2000, as a Goods and Service (GST) tax offset so home buying became more affordable for Australians. Here’s the deal: facilitated by each territory and state government, the FHOG varies depending on the location of the home purchased, and on each government’s budget. So, what’s the current First Home Owners Grant QLD legislation? Let’s look at this state’s ruling now.
FHOG QLD Rule Changes
Now: when the FHOG first made an entrance on the Queensland scene it applied to all homes, both new and established with no property price cap. Today, the grant, known as the FHOG QLD, applies to new builds and significantly renovated property with a capped value of $750,000.
What’s the bottom-line? The Queensland government boosted the FHOG QLD from $15,000 to $20,000 in the 2016 budget. This grant, however, reverts to $15,000 on January 1st, 2019.
Want to know the best part of the FHOG QLD? Substantially renovated homes are also eligible for the grant, providing the renovated home has not been previously lived-in or sold in its restored condition. The seller of the substantially renovated property must also supply you with a statement displaying the GST component of the renovation, as evidence that the renovation component is a taxable supply.
But here’s the kicker: not all renovations classify as substantial. According to the Queensland Government, substantial means:
- Structural works, such as the replacement or alteration of foundations, walls, floors, roofs, brickwork and windows and doors.
- Non-structural changes, such as electrical rewiring, support wall replacement, plastering and rendering walls, major plumbing.
- Cosmetic work, such as painting, sanding floors, replacing fixtures and fittings – lights, curtains and carpets.
This is crazy, but partial property renovations and minor cosmetic work do not count as substantial. If you’re in doubt, then visit the Queensland Government site or contact a mortgage broker for more information.
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How To Apply For The FHOG QLD
As the adage states, Timing is everything. This proverb applies to the FHOG QLD as well. Leave your run too late, and you may miss your opportunity. Let’s look at different circumstances and when you should apply for the FHOG QLD.
- Buying a home – Your application must be submitted within a year of taking possession of your new home and registering your title.
- Building contract or owner-builder – Application submission must occur within 12-months of the new home completion, and the final inspection report delivery.
It gets better: you can submit applications for the FHOG QLD via your lender, either a bank, financial institution or a broker. Alternatively, you can lodge your application in-person with the Office of State Revenue, along with your supporting documents.
FHOG QLD Supporting Documents
Apart from lodging your application form for the FHOG QLD, you’ll also need to submit documents that substantiate what you’re claiming. These documents include:
- Property – You’ll need to prove that you own the property by providing a signed building contract or renovation statement, as well as the property title registration, your final inspection certificate, and a rate notice.
- Proof of identity – You’ll need a number of documents for a 100-point ID check including your birth certificate, passport, visa, driver license, Medicare card, and car registration, as well as debit card, utility bill, bank statement, home insurance policy, and certificates to prove marriage or divorce.
- Financials – To prove you’re responsible for the home loan and your home is valued at the price that you’re claiming you’ll need a home valuation, loan evidence and a statutory declaration if someone is helping you financially with the home’s finance.
FHOG QLD Stamp Duty Concessions
You might be wondering: does the Queensland Government offer stamp duty concessions? The answer to this question is they do, and these come in the form of a home concession’ and a first home concession’ on land and property valued at under $550,000, providing this is a property that you will occupy.
The Home Concession
The home concession applies a duty rate to the value of the home purchased. For instance, if you buy a home worth $350,000.00 then under the stamp duty concession you’d pay $1.00 per $100 of value (or part, if not a full $100). Therefore, the stamp duty on a $350,000.00 home is $3,500.00. However, homes over $350,000.00 attract a higher stamp duty rate. The fees are as follows:
|Purchase Value||Stamp Duty Concession|
|Up to $350,000||$1.00 per $100 of value or part $100 value.|
|$350,000 to $450,000||$3,500 + $3.5 per $100 or part $100 value over $350,000.|
|$540,000 to $1,000,000||$10,150 + $4.50 per $100 or part of $100 over $540,000.|
|Over $1,000,000||$30,850 + $5.75 per $100 or part of $100 over $1,000,000.|
The First Home Concession
When a first home buyer buys property, they are entitled to both the home concession’, and the first home concession’ when paying stamp duty. Therefore, they’ll have to pay the discounted home concession’ stamp duty rate, minus the applicable first home concession’ rate, detailed below:
|Purchase Price||Stamp Duty Payable|
|Up to $504,999.99||$8,750|
|$505,000 to $509,999.99||$7,875|
|$510,000 to $514,999.99||$7,000|
|$515,000 to $519,999.99||$6,125|
|$520,000 to $524,999.99||$5,250|
|$525,000 to $529,999.99||$4,375|
|$530,000 to $534,999.99||$3,500|
|$535,000 to $539,999.99||$2,625|
|$540,000 to $544,999.99||$1,750|
|$550,000 and above||$0|
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First Home Owners Grant Links
Additionally, each territory and state government have a link to their FHOG, as listed below. However, you can also visit the Federal Government site to obtain more information.
|State / Territory||Website|
|Australian Capital Territory||revenue.act.gov.au|
|New South Wales||www.osr.nsw.gov.au|
If you’re not buying a home in QLD, then you may be eligible for the First Home Buyer Grant in another state. Just remember that all states have different rulings, so you need to read the legislation before applying for the FHOG.
Are you seeking to buy your first home in QLD? Then contact eChoice, our brokers can help you understand the First Home Owners Grant QLD and assist with your application. Plus, they have access to 100’s of mortgage products. So, we’ll find you a competitive mortgage.