Your guide to the First Home Owner Grant WA

Your guide to the First Home Owner Grant WA

Kathryn Lee - 28 May, 2019

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.

What is the First Home Owners Grant in 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.

How much is the first home buyers grant in WA?

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.

Eligibility for the First Home Buyers Grant in WA

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:

  • Each applicant must be over the age of 18
  • You must be a ‘natural person’ – meaning an individual, not a trust or company
  • At least one applicant must be an Australian Citizen or a permanent resident
  • None of the applicants can have previously received any First Home Buyer Grants or Concessions
  • None of the applicants can have owned property anywhere in Australia before 1 July 2000
  • Each applicant must live in the property as their primary place of residence for a continuous period of at least six months, within a year of the transaction. The guidelines are as follows:
  • If you are buying a home, this is generally the date of settlement
  • If you have entered into a building contract, this is the date that the home is ready for occupation, which is when the builder hands over the keys to the home
  • For owner builders, this is the date that the home is ready for occupation

The First Home Owners Grant in Perth

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:

  • $750,000 if the property is located south of the 26th parallel of south latitude
  • $1,000,000 if located north of the 26th parallel of south latitude
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.

Changes to the First Home Owners Grant in WA

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.

How do I apply for first home owners grant WA?

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.

This includes:

  • Identity documentation such as a passport, birth certificate or citizenship certificate
  • Linkage documentation (to connect the identity to the person) including current drivers licence or proof of age card
  • Evidence of residency in Australia, including Medicare card, motor vehicle registration, debit or credit card or Centrelink Department of Veterans Affairs card
  • Transaction documentation, including the contract to purchase or build the home or evidence of the cost to construct. You may also need to supply a valuation document of the home
  • If you are applying for the $5,000 boost payment, you will also need to complete the form titled F-FHOG5 ‘Boost Payment – Addendum to the FHOG Application Form’.

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.

How long does it take to receive the First Home Owners Grant WA?

How to make an offer on a house

You’ve found your dream home and are ready to make an offer – but where do you start? Here’s how to submit your offer to the agent or vendor.

The timeframe within which you will receive the grant will depend on the type of property and how you apply:

  • Purchase of an established home through an approved agent: Received at time of settlement
  • Contract to build, through an approved agent or directly through State Revenue Office: Received after you’ve provided evidence of the date of first construction progress payment and your name is registered on the Certificate of Title
  • Purchase of a new or off-the-plan property through an approved agent: Received at time of settlement

Other First Home Buyer Concessions in Western Australia

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.

  • If your home purchase price is below $430,000, you will not have to pay any transfer duty
  • If your home purchase is between $430,001 and $530,000, a reduced amount of transfer duty is payable at $19.19 per $100 above $430,001

The FHOR is available on transfers for eligible purchasers who:

  • Qualify for the First Home Owner Grant
  • Are an Indian Ocean Territory resident buying their first home
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:

  • The purchase price of the property is valued at $400,000 or less
  • It must be for your first home, which is established or partially built
  • None of the applicants can have previously owned a property in WA
  • You must live in the home for at least the first year
  • You must purchase the home through a licensed real estate agent
  • The purchase must be financed through a lending institution

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.

Example Page

You might also like:

Get your tailored home loan report. Start Now