UPDATE TO FIRST HOME BUYERS GRANT CHANGES

In November, 2008, the Commonwealth Government announced changes to the First Home Owners Grant Scheme, through the release of its first Economic Stimulus Package. The changes are temporary measures aimed at boosting economic activity in the Australian Housing Industry. As at 30^th June, 2009, the changes will expire and the grant will revert back to its original form.

Following is an update of the temporary changes:

Commonwealth’s First Home Owner Boost

The Australian Government has announced a First Home Owner Boost, which supplements the NSW Government funded First Home Owner Grant Scheme. According to the announcement from the Commonwealth: first home buyers who purchase established homes will receive a boost of $7,000 that will double the grant to $14,000 first home buyers who build a new home or purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000.

NSW New Home Buyers Supplement

First home buyers in NSW who qualify for the First Home Owner Grant and are buying a newly constructed home or building their first home will be eligible for an additional $3,000 payment known as the NSW New Home Buyers Supplement.

The $3,000 New Home Buyers Supplement is in addition to the $7,000 First Home Owner Grant and the Australian Government’s $14, 000 First Home Owner Boost. With the NSW Government’s New Home Buyers Supplement Scheme, first home buyers of new homes will receive maximum benefits of up to $24,000.

Both the First Home Owner Grant and the New Home Buyers Supplement are fully funded by the NSW Goverment.

First Home Plus Scheme

If you are buying or building your first home, you may be eligible for benefits under the First Home Owner Grant Scheme and/or the First Home Plus Scheme.

Additionally to the Grants available, the NSW First Home Plus Scheme provides generous exemptions or concessions on transfer duty for eligible first home buyers. This includes vacant land on which you intend to build your first home.

First Home Owner Grant Property Value Cap

Effective from 1 July 2009 (subject to Federal Government approval) the First Home Owner Grant will be capped and only be available for properties valued up to $750,000.