On the 7th of November 2013, the State Revenue Office in Tasmania announced that the first home buyers grant would be increased to $30,000 for first home buyers who were looking to build a new home. This grant evidentially is a $23,000 boost to the existing $7,000 first home buyers grant that is on offer. The first home buyers grant for those looking to build is officially called the First Home Builder Boost (FHBB). This grant is available to first home buyers who are seeking to build their first home between the 7th of November 2013 and the 31st of December 2014.
The FHBB has been increased from $8,000 to $23,000 in an effort to assist first home builders who are looking for a more effective way of reaching deposit demands sooner. In fact, builder’s have reportedly said that most first home buyers who were looking to build felt that the biggest draw-back was the time it was taking to save a deposit for their home. The Tasmanian Government also feel that the boost to the grant will increase home building in Tasmania, which, in turn, will positively influence the national economy.
How Does the New First Home Buyers Grant Work?
The first home buyers grant, for those who are seeking to build their first home, is linked to the First Home Owners Grant (FHOG) already offered by the Tasmanian Government. This means that applicants must first meet the eligibility criteria of the FHOG to be eligible, and then, they must meet the additional criteria of the FHBB, before they are able to receive the full amount of $30,000.
What Eligibility Criteria Needs to be Met to Receive These Grants?
To be eligible for the FHOG you must be:
18-years of age or older;
An Australian citizen or permanent resident;
A person, not a company;
A genuine first home buyer who has not owned a home in Australia before 1 July 2000 or owned and occupied a home for more than 6-months after 1 July 2000;
An applicant who has not previously received the FHOG; and
An applicant who has not entered into a contract to purchase or build a home before 1 July 2000.
To be eligible for the FHBB you must meet the eligibility criteria of the FHOG, and be:
Building a home in Tasmania;
Building a home fixed to land, not a mobile home or transportable;
Building a home that meets local planning standards; and
Building a home that will be completed within 24-months, with building to start within 26-weeks of the date of the contract to build being signed.
If I Meet This Criteria, How Much Will I Receive?
The FHOG is a $7,000 grant, whereas the FHBB is offered at two different levels, which are dependent on when you signed a contract to build. Contracts signed between:
1 January 2013 and 6 November 2013 are eligible for an $8,000 grant.
7 November 2013 and 31 December 2014 are eligible for a $23,000 grant.
For more information about the FHOG and the FHBB, please visit the Tasmanian Department of Treasury and Finance.
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Written by eChoice