- First home buyers now eligible for $10,000 grant for newly-constructed homes
Grant for newly constructed homes increased from $7,000 to $10,000
FHOG grant changes designed to boost housing supply and construction jobs
Buyers of established homes eligible for a $3,000 grant
First home buyers of newly constructed homes are eligible to receive an increased grant of $10,000 from the State Government.
The boost to the First Home Owner Grant (FHOG) - from $7,000 to $10,000 - takes effect today.
It means first home buyers signing a contract to build or purchase a new home and owner-builders who commence laying foundations for the home will be eligible for the increased grant of $10,000.
First home buyers signing a contract to purchase an established home will be eligible for a $3,000 grant.
Treasurer Troy Buswell said the changes were part of the Liberal National Government’s commitment to support first home buyers enter the market and would also increase housing stock in Western Australia.
“These important changes not only reflect sound policy to increase our overall housing supply, but the decision will also help create jobs in the housing sector,” Mr Buswell said.
“Increasing the grant for new homes will provide first home buyers with greater incentive to buy or build a new dwelling rather than purchase an established home. This will help alleviate the pressure placed on the existing housing stock by the State’s high population growth and drive jobs growth.”
Western Australia, South Australia and Tasmania are the only remaining States that still provide a grant to purchasers of established homes.
The FHOG changes are part of the Liberal National Government’s housing initiatives outlined in the 2013-14 State Budget.
As the amount of the grant is specified in legislation, the changes were unable to commence until the First Home Owner Grant Act 2000 had been amended.
Following passage of these amendments by the Legislative Council last week, these amendments have now received Royal Assent.
Further information on the changes to the First Home Owner Grant, including the updated application form and lodgement guide, can be found on the Department of Finance website at http://www.finance.wa.gov.au
It is estimated that each year around 800 first home buyers will switch from purchasing established homes to new homes in response to the changes
First home buyers will continue to be exempt from transfer duty on new and established home purchases up to $500,000 (or vacant land purchases up to $300,000), saving up to $17,765
In 2012-13, first home owners in WA saved $176million on duty exemptions and concessions
Treasurer’s office - 6552 6400