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Archive for December 13th, 2008

Saturday, December 13th, 2008 | Author:
Please read info below if you are interested to buy a house and want to claim the FHOG and other details then read on…

First Home Boost

The First Home Owner Boost Scheme (the Boost) is an Australian Government initiative to assist first home buyers purchase or build their first home. The scheme is administered by the Victorian Government (State Revenue Office) and is in addition to the $7,000 First Home Owner Grant. The Boost provides first home buyers with:

  • an extra $7,000 for buying an established home
  • an extra $14,000 for buying or building a new home

The Boost applies to contracts entered into between 14 October 2008 and 30 June 2009 (inclusive).

First Home Owner Boost benefits

Established homes

First home buyers purchasing an established home may be eligible for the $7,000 Boost in addition to the First Home Owner Grant ($7,000) and the First Home Bonus ($3,000*), bringing the total benefits to $17,000.

*Subject to certain requirements being met.

New homes

First home buyers building a new home or purchasing a newly constructed home may be eligible for the $14,000 Boost, in addition to the First Home Owner Grant ($7,000), the First Home Bonus ($5,000*) and the First Home Owner Regional Bonus ($3,000*), bringing the total benefits to $29,000.

Where a newly constructed home is being purchased, it must be the first sale of that home. The home must also have never been previously occupied as a place of residence, including occupation by the builder, a tenant or other occupant.

Substantially renovated homes may be considered as a new home. Where a substantially renovated home is being purchased, it must be the first sale of the home since it was substantially renovated. The home, since being substantially renovated, must also have never been previously occupied as a place of residence, including occupation by the builder, a tenant or other occupant.

Substantial renovations of a building are renovations where the entire building, or substantially all of the building, has been removed or replaced.

Note: Where the consideration is less than the total benefit available, the applicant will be entitled to an amount equal to the value of the consideration.

*Subject to certain requirements being met.

Eligibility criteria

To be eligible to receive the Boost, first home buyers must satisfy the requirements of the existing First Home Owner Grant and the additional Boost requirements.

Existing First Home Owner Grant eligibility criteria

  • Be a natural person (ie: not a company or trust), at least 18 years of age and whose interest in the property is not held subject to a trust
  • At least one applicant is an Australian citizen or a permanent resident
  • At least one applicant will reside in the home as their principal place of residence for a continuous period of at least 6 months commencing within 12 months of completion of the eligible transaction
  • Not have previously received a First Home Owner Grant in any State or Territory of Australia
  • Not have previously owned or held a relevant interest in a residential property anywhere in Australia prior to 1 July 2000
  • Not have occupied for a continuous period of at least 6 months, a residential property in which they acquired a relevant interest on or after 1 July 2000 anywhere in Australia.

Additional eligibility criteria for First Home Owner Boost

Established homes

To be eligible to receive the $7,000 Boost for the purchase of an established home, first home buyers must have entered into a contract to purchase an established home between 14 October 2008 and 30 June 2009 (inclusive).

New homes being purchased under a contract

To be eligible to receive the $14,000 Boost for the purchase of a newly constructed home, first home buyers must have entered into a contract to purchase a newly constructed home between 14 October 2008 and 30 June 2009 (inclusive).

New homes being built under a building contract

To be eligible to receive the $14,000 Boost for building a new home, first home buyers must have entered into a contract to build a home between 14 October 2008 and 30 June 2009 (inclusive).

In addition:

  • construction must commence within 26 weeks of the date of the contract
  • the contract must specify a completion date for building work within 18 months of the date of construction commencing or construction must be completed within 18 months of the construction commencing.

In limited circumstances the Commissioner may approve an extension to the commencement and completion date where the delay was outside the control of the parties and could not have been forseen at the time of entering into the contract.

New homes being purchased ‘off the plan’

To be eligible for the $14,000 Boost for purchasing a new home ’off the plan‘ the contract must be entered into between 14 October 2008 and 30 June 2009 (inclusive) and the contract must specify a completion date on or before 31 December 2010.

In limited circumstances the Commissioner may approve an extension to the completion date where the delay was outside the control of the parties and could not have been foreseen at the time of entering into the contract.

New homes being built by an owner builder

To be eligible for the $14,000 Boost for building a new home as an owner builder, construction (i.e. laying foundations) must commence between 14 October 2008 and 30 June 2009 (inclusive) and construction must be completed within 18 months of the date of construction commencing.

In limited circumstances the Commissioner may approve an extension to the completion date where the delay was outside the control of the applicant and could not have been foreseen at the time of commencement of construction.

Ineligible first homes

The First Home Owner Boost scheme will not apply when a:

  • Contract to purchase or build a home replaces an earlier contract made before 14 October 2008 to purchase the same home or to build the same, or a substantially similar, home.
  • Contract was entered into, or in the case of owner builders construction commenced before 14 October 2008.
  • Contract was entered into, or in the case of owner builders construction commenced on or after 1 July 2009.

Note: The existing First Home Owner Grant will continue to be available to first home owners after 30 June 2009.

How do I apply for the First Home Owner Boost?

False claims and penalties

There are substantial penalties for knowingly making false or misleading statements in connection with an application for the first home benefits. The SRO conducts investigations and compliance checks to ensure First Home Owner Grant and Boost benefits are only given to applicants entitled to receive them.
The SRO audits applications with current and historical data held by other State and Territory agencies and commercial organisations.