The First Home Owner's Grant Guide: Western Australia - Pearl Financial

The First Home Owner’s Grant Guide: Western Australia

By Shane | First Home Buyer

Mar 03

If you’re buying or building your first home, you may be eligible for the First Home Owner Grant. The First Home Owner Grant scheme is completely funded by the Western Australian Government and managed by the Office of State Revenue.

First home owners purchasing or building a new home may be eligible to receive a grant up to $10,000. The First Home Owner Grant is not means tested. There is no income test. But if you or your partner have owned residential property before, you may not be eligible for the First Home Owner Grant.

How can you apply for the First Home Owner Grant?   

Applicants can get the application forms from an approved agent or from the Office of State Revenue’s website. Banks and other lenders are what you refer to as approved agents. An applicant can apply for the First Home Owner Grant once a contract to purchase or build a home has been signed and dated by all parties to the contract and appropriately witnessed.

If you’re an owner-builder, the application can be made after the foundations have been laid. An application for the First Home Owner Grant must be made within twelve months of completion of the eligible transaction. It can be lodged through their bank or lender, or with the Office of State Revenue.

Who is eligible for the First Home Owner Grant?

There is a comprehensive list of eligibility criteria on the Office of State Revenue website that explains the specific conditions applicants must satisfy in order to qualify for the First Home Owner Grant. To be eligible for the grant, applicants need to be a natural person, over 18 years of age, and at least one of the applicants must be an Australian citizen or a permanent resident. However, if an applicant or the applicant’s partner owned a residential property or investment property anywhere in Australia before July 1, 2000, they are not eligible for the grant.

What about after July 1, 2000?

An applicant may be eligible for the grant, but it’s best to carefully read the full list of eligibility criteria or contact the Office of State revenue for more information.

Is there a cap amount on how much the property can be worth?

Yes, there is. If the property is located south of the 26th parallel of south latitude, the cap amount is $750,000. On the other hand, if the property is located north of the 26th parallel of south latitude, the cap amount is $1,000,000.

It’s very important to know that in order to be eligible for the First Home Owner Grant, each applicant must occupy the home as their principal place of residence for a continuous period of at least six months, beginning within twelve months of completion of eligible transaction. An eligible transaction is a contract for the purchase of a home, a contract to build a home or construction of a home as an owner-builder that doesn’t exceed the cap amount specified.

If you’re a first home buyer and you’re not sure if you’re eligible for the grant, can you just lodge an application and see what response will you get back?

No, it’s really important to note that the application form, once submitted, is a legal document. It is actually an offence under the FHOG Act 2000 to provide false or misleading information. If you’re found doing so, you could be prosecuted or face a court-imposed fine of up to $20,000.

Whether you’re going to buy or build your first home, it’s certainly important that you check your eligibility first before applying for the First Home Owner Grant.

 

Please note that this information was correct at the time of publishing. Please check with your relevant state authority or speak with your trusted professional about any changes to the rules and regulations surrounding the first home owner grant.

 

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About the Author

Shane specialises in helping Gen Y professionals and business owners make an impact by accumulating more assets, generating more income, and having more time to enjoy life. He has a Master of Applied Finance, an MBA, and a Master of Financial Planning. He is also a terrible golfer.

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