Queensland First Home Owner Grant boost

The Queensland Government recently announced a $15,000.00 boost to the First Home Owner Grant (FHOG), taking the total grant to $30,000.00 for eligible first home purchases.

The FHOG is a one-off payment designed to assist first home owners in Queensland buying their first home.

The FHOG boost applies to transactions entered into on or after 20 November 2023 and is set to expire by 30 June 2025.

Eligibility criteria for FHOG

These are outlined at https://qro.qld.gov.au/property-concessions-grants/first-home-grant/eligibility/ and are summarised as follows:

• You must be buying or building a new home valued less than $750,000 (including the value of the land and any contract variations);
• You must be an Australian citizen or permanent resident, 18 years or older (with limited exceptions) and buying the property in your personal names;
• The home can be a house, unit, duplex or townhouse, a granny flat built on a relative’s land, a home that has been moved from one site to another (including kit homes or modular homes), a home in a manufactured home park, or a substantially renovated home.
• The must be one of the following eligible transactions: new home, off-the-plan purchase, substantial renovation, contract to build or owner-builder.
• Established homes (ones that have been lived in before) are not eligible for the grant.
• You or your spouse must never had been paid a first home owner grant in any state or territory of Australia. A person is regarded as a spouse if they are married, a de facto partner who has been living with the other person on a genuine domestic basis for 2 years or more, or a registered partner (under the Civil Partnerships Act 2011).
• You or your spouse must not have owned any residential property in Australia before 1 July 2000 and you or your spouse must not have owned residential property that you have lived in after 1 July 2000.
• You must move into the property within 1 year of completing the transaction and remain there for a continuous period of 6 months.
• The home may not be bought from or built by a related person.

Disqualifying arrangements

Even if you meet the eligibility criteria, there are some circumstances that may stop you from getting the FHOG or mean you have to repay the FHOG if it has already been paid. For example:

• If you enter into an arrangement to circumvent limitations or requirements, for example if you cancel an existing contract and enter into a replacement contract on or after 20 November 2023 (see Public Ruling FHOGA000.2.1: https://qro.qld.gov.au/resource/fhoga000-2/);
• If you enter into an arrangement with the sole purpose of obtaining the grant, rather than acquiring a home; or
• If you buy or build your new home with financial help from a related person (who is not eligible for the grant) who will also stay in the home often or for long periods of time, and the Commissioner is not satisfied there are genuine family reasons for the related person to occupy the home. Please note that money borrowed from a bank or lending institution is not considered to be financial help in this instance.

Other considerations

There are differences in eligibility criteria for the FHOG and Queensland stamp duty concessions (such as the First Home Concession and First Home Vacant Land Concession). For example, in relation to the residency requirements, under the First Home Concession you must move occupy the property within 1 year of completing the transaction and not dispose of the property for 1 year.

Please consult https://qro.qld.gov.au/duties/transfer-duty/concessions/homes/concessions-and-grants for further information.

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