First Home Bonus Grant

First Home Bonus Grant

The First Home Bonus Grant (FHBG) applied to eligible contracts entered into between 5 June 2008 and 14 October 2012

The First Home Bonus Grant (FHBG) was available for contracts entered into between 5 June 2008 and 14 October 2012 (inclusive) and was payable in addition to the First Home Owner Grant (FHOG). Applicants were required to meet the eligibility criteria of the FHOG in order to be eligible for the FHBG.

Eligible transactions commenced between 17 September 2010 and 14 October 2012 The FHBG provided an additional $8000 to eligible first home buyers, that were building a home or purchasing a newly-constructed home.
  

Eligible transactions commenced between 5 June 2008 and 16 September 2010

The FHBG provided an additional $4000 to eligible first home buyers that were purchasing an established home, building a home or purchasing a newly-constructed home.

A newly-constructed home (including a substantially renovated home) means a property that has never been sold by the builder/vendor, or been occupied as a residence by a tenant or other occupant. The purchaser was required to provide proof, such as a statement from the vendor or other evidence, that the property met the requirements for them to be eligible for the higher level of the FHBG.

How much was the FHBG?

A FHBG was available for homes where the market value did not exceed $400 000, and phased out for new homes with a market value between $400 000 and $450 000 at a rate of $16 for every $100 in excess of $400 000.


The table below outlines the maximum FHBG grant that was available in increments of $5000 increases over $400 000.

Market Value

FHBG

New and Established Homes
5 June 2008 to 16 September 2010

FHBG

New Homes
17 September 2010 to 14 October 2012


  Up to
$400 000

  $4000

 $8000

$405 000

$3600

$7200

$410 000

$3200

$6400

$415 000

$2800

$5600

$420 000

$2400

$4800

$425 000

$2000

$4000

$430 000

$1600

$3200

$435 000

$1200

$2400

$440 000

$800

$1600

$445 000

$400

$800

$450 000
and above

Nil

Nil

Property Value Cap

A property value cap applied. The property value cap was $450 000 based on the market value of the property purchased or built.

In the case of a contract to purchase a home the market value was:

  • the consideration for the purchase of the property; or

  • where the consideration was less than market value, the market value of the property.

In the case of comprehensive building contract the market value was:

  • the sum of the consideration for the building contract and the market value of the land on which the home was to be built as at the time the contract was made; or

  • where the consideration for the building contract was less than actual costs, the sum of the actual costs to build the home and the market value of the land on which the home was to be built as at the time the building contract was made.

In the case of an owner builder the market value was:

  • the market value of the property on which the home was situated at the time the home was completed and ready for occupation as a place of residence.

NOTE: in the cases of a genuine farm the market value of the property was determined on the value of the home and curtilage area of that part of the land that constituted the site and curtilage of a home that was to be built on that site.

Commencement and completion dates

Contract to build a new home

For an eligible transaction entered into on or after 10 June 2011, building must have commenced (i.e. the foundations must have been laid) within 26 weeks after the contract was executed and the contract must have specified a completion date of within 18 months of commencement.

If no completion date was specified in the contract, the construction must have been completed within 18 months after the foundations were laid.

The completion date was the date the building became ready for occupation as a place of residence.

Owner builder

Where construction commenced on or after 10 June 2011, construction of the home must have been completed within 18 months after its commencement date.

The commencement date was the date when laying of the foundation commenced or another date the Commissioner of State Taxation considered appropriate in the circumstances of the case.

The completion date was the date the building became ready for occupation as a place of residence.

Off the plan

In the case of contracts executed between 1 July 2012 and 14 October 2012 (inclusive), the contract must have stated that the new home would be completed on or before 14 April 2014. If no date was stated in the contract, an application could have been made prior to completion; however payment of the FHBG was not be made until after completion. Construction must have been completed before 14 April 2014.

In the case of contracts executed between 10 June 2011 and 30 June 2012 (inclusive), the contract must have stated that the new home would be completed on or before 31 December 2013. If no date was stated in the contract, an application could have been made prior to completion; however payment of the FHBG was not be made until after completion. Construction must have been completed before 31 December 2013.

The completion date for an off the plan home was the date the purchaser became entitled to possession under the contract and they obtained registered title to the land on which the home was situated.

Replacement contracts

You were not be eligible for the FHBG if you entered into a contract that replaced an existing contract made outside of the relevant eligible dates for the FHBG, and that earlier contract was:

  • a contract for the purchase of the same home; or

  • a comprehensive home building contract to build the same or a substantially similar home.

How were applications made?

An Addendum to the First Home Owner Grant Application was required to be lodged with a First Home Owner Grant Application. Both could be lodged with RevenueSA or with an Approved Agent if you borrowed funds from the agent, as part of buying or building a new home.

Applications were required to be lodged within 12 months of completing the transaction.