If you’ve checked out our other guides to the FHOG, you may be wondering ‘Is there a First Home Buyers Grant in WA?’ The answer is yes – each Australian state and territory has its own version of the First Home Owner Grant and Western Australia is no exception.
However, no two FHOGs are exactly alike, so it’s important to familiarise yourself with the specific guidelines in your state before you apply. Read on for your in-depth guide to everything you need to know about the First Home Owner Grant WA.
The First Home Owner Grant was introduced nationally in July 2000 by the Howard Government. Originally designed to offset the newly introduced GST (goods and services tax), the scheme makes it easier for Australians to purchase their first home. In Western Australian, the government offers a one-off payment to encourage and help first home buyers purchase or build a residential property.
The First Home Owners Grant in WA is currently $10,000 for eligible first home buyers seeking a ‘new’ home valued under $1,000,000, if located north of the 26th parallel. If the new home is located south of the 26th parallel, the grant amount is capped at $750,000.
So, what constitutes a ‘new’ home, exactly? The Western Australian government defines this as a property that has never been lived in or sold to another party before. In WA, established houses, holiday houses, businesses or commercial properties, renovations to an existing home and vacant lots (unless there is a contract in place to build a residential property on it) are not considered new homes and therefore, are not eligible.
In Western Australia, you must meet certain requirements in order to qualify for the FHOG. The criteria for First Home Owners Grant WA eligibility includes:
Properties in Perth are partially restricted by the FHOG. For eligible transactions commencing on or after 1 January 2010, the total value of the home must not exceed the cap amount. This is:
All Perth metropolitan areas are south of the 26th parallel, meaning you can only claim the FHOG if you are purchasing a property valued at less than $750,000.
The First Home Owners Grant in WA has undergone several changes since first being introduced in 2000. Until 2015, first-time buyers purchasing established homes were able to claim up to $3,000 in FHOG. However, this was abolished in the 2015-2016 State Budget and you can no longer claim anything on established homes in WA. More recently, the FHOG was reduced from $15,000 to $10,000 in July 2017. However, for eligible transactions made between 1 January and 30 June 2017, an additional $5000 boost payment may be available.
The First Home Buyers Grant WA rules state that you must submit your application within 12 months of the transaction date. There are two ways you can do so. The simplest option is to apply through an approved agent. Generally, if you are also applying for a loan, this will be your financial lender. However, it can also be a conveyancer or solicitor. Applying for a FHOG can be quite a lengthy complex process, so going down this route can result in quicker approval.
You can also lodge your application yourself directly with the Office of State Revenue. As well as filling out the First Home Buyers Grant WA application form, you will need to make sure you supply all relevant documentation.
Your application must be submitted via mail or in person at the Western Australia State Revenue Office. However, you can check the status of application online at the The FHOG UIN and Status Enquiry Facility.
The timeframe within which you will receive the grant will depend on the type of property and how you apply:
There are number of other first home buyer concessions in WA you may be eligible for, as well as the FHOG. These include:
First Home Owner Rate Of Duty
In claiming the First Home Owners Grant in WA, you may also be entitled to the ‘First Home Owner Rate Of Duty’ (FHOR). This means you will pay a reduced state tax called transfer duty (also known as stamp duty). The amount you will be required to pay depends on the purchase value of your home.
The FHOR is available on transfers for eligible purchasers who:
To apply for the FHOR, you will need submit an “application for the grant and/or FHOR pre-approval” form with your financial institution or the Office of State Revenue (OSR).
If you’re eligible for this concession you will be notified by State Revenue Office and given a First Home Owner Rate Of Duty form. You then need to lodge the transaction record and the contract for sale and/or transfer of land) with the completed and signed application form to your approved agent or directly through the OSR if you’re organising your own settlement.
The Home Buyers Assistance Account
This scheme provides first home buyers with a grant of up to $2,000, if they buy an established or partially built home valued at $400,000 or less. This can be used to cover expenses such as mortgage, conveyancing and valuation fees, mortgage insurance premiums and more.
To be eligible for the Home Buyers Assistance Account, you must meet the following criteria:
Are you looking to buy your first home in Western Australia? Get in touch with eChoice today. Our experienced brokers can help you understand the First Home Owners Grant in WA and ensure your application goes as smoothly as possible. Plus, we also have access to hundreds of mortgage products, so we can help you find a competitive deal that best suits your needs.