What changes have been made to the First Home Bonus Grant of up to $8000?

As part of the State Budget 2011 handed down on 9 June 2011, the Treasurer announced that the First Home Bonus Grant (FHBG ) of up to $8000 will reduce to up to $4000 from 1 July 2012 and will be fully abolished from 1 July 2013.  Further, commencement and/or completion conditions for the building of a new home apply for an eligible transaction entered into on or after 10 June 2011.

If eligible, the bonus grant is in addition to the $7000 First Home Owner Grant.

If you have entered into a contract to purchase or build a New Home* or after 17 September 2010, or in the case of an owner builder commence construction of a New Home on or after 17 September 2010, (New Home means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home.)

OR

If you entered into a contract up to and including 16 September 2010, to purchase or build or in the case of an owner builder commenced construction of a home on or before 16 september 2010,  then you may be eligible for upto $8000

What is the First Home Bonus Grant of up to $8000?

As part of the State Budget 2010 handed down on 16 September 2010, the Treasurer announced the introduction of a First Home Bonus Grant of up to $8000 (FHBG) for first home buyers who enter into a contract to purchase or build a New Home on or after 17 September 2010, or commence construction as an owner builder on or after 17 September 2010.

New Home means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home.

The First Home Bonus Grant of up to $8000 replaces the First Home Bonus Grant of up to $4000.

To find out more visit Revenue SA

Who is eligible to receive the First Home Bonus Grant of up to $8000?

The FHBG of up to $8000 is an additional payment for first home buyers who qualify to receive a First Home Owner Grant of $7000 where the market value of the property is less than $450,000.

The amount of the FHBG will be determined by the market value of the property which:

• in the case of a contract for the purchase of a new home is the consideration for the purchase of the home, or, where that consideration is less than the market value, then the market value of the property;
• in the case of a comprehensive building contract is the sum of the consideration for the building contract and the market value of the property on which the home is to be built as at the time when the contract is made, or, where the consideration for the building contract is less than the actual costs, the sum of the actual costs to build the home and the market value of the property on which the home is to be built as at the time the building contract is made;
• in the case of an owner builder is the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.

Note: In the case of a farming property the market value of the property will be determined on the value of the home and curtilage area or that part of the land that is to constitute the site and curtilage of a home that is to be built on that site.

To determine the amount of the FHBG that you may be eligible for, go to www.revenuesa.sa.gov.au

How much is the First Home Bonus Grant?

A FHBG of $8000 is available until 30 June 2012 for first home purchases with a market value of up to $400,000 and phases out for property with market values between $400,000 and $450,000 by $16 for every $100 in excess of $400,000.

The FHBG is in addition to the $7000 First Home Owner Grant.

Revenue Offices

NSW    www.osr.nsw.gov.au
VIC    www.sro.vic.gov.au
QLD    www.osr.qld.gov.au
SA    www.revenuesa.sa.gov.au
NT    www.nt.gov.au/ntt/revenue
TAS    www.sro.tas.gov.au
WA    www.osr.wa.gov.au
ACT    www.revenue.act.gov.au