First Home Owner Grant Cap
- When did the First Home Owner Grant Cap commence?
The Cap commenced on 1 January 2010 and applies where the commencement date of the eligible transaction is on or after 1 January 2010.
- What is the cap amount?
The cap amount is the maximum total value a home can be to be eligible for the grant. The cap amount is reviewed annually and the cap applicable to your application is determined by the commencement date of the eligible transaction. This is the date of the contract to purchase or build a home or, for an owner builder, the date the laying of foundations commenced.
| Eligible transaction from | Eligible transaction to | Cap amount |
|---|---|---|
1 October 2012 | onwards | $650,000 |
1 January 2011 | 30 September 2012 | $835,000 |
1 January 2010 | 31 December 2010 | $750,000 |
1 July 2000 | 31 December 2009 | No cap applicable |
- How is the Total Value of the home calculated?
For a contract of sale of a home, the total value is based on the greater of the following:
the consideration of the eligible transaction
the unencumbered value, as at the commencement date of the eligible transaction.
For a comprehensive home building contract, the total value is calculated by adding together:
the consideration for the eligible transaction, and
the value, at the commencement date of the relevant interest of the land on which the home is to be built.
For a building of a home by an owner builder, the total value is calculated by adding together:
the unencumbered value at the date the transaction is completed of the home and
the value, at the date the transaction is completed, of the relevant interest in the land on which the home is built.
The value of the relevant interest in the land on which the home is to be built is the greater of the following:
the consideration paid or payable for the interest
the unencumbered value of the interest.
- My contract of sale is dated 31 December 2009 but the settlement will take place after 1 January 2010. Does the $750,000 Cap apply?
No, the Cap applies for contracts dated on or after 1 January 2010 and not the date of the settlement.
- I purchased my land before 1 January 2010 but my comprehensive building contract is dated after 1 January 2010. Does the Cap apply?
Yes, in the case of a contract to build a home the Cap applies on the date you signed the comprehensive building contract.
- I will be an owner builder and the construction of my home will be completed after 1 January 2010, but I commenced construction before 1 January 2010. Does the Cap apply?
No, for owner builders the Cap applies when the commencement of construction (laying of the foundation) is on or after 1 January 2010.
- The value of my land is $350,000 and the construction price on the building contract was $300,000, am I within the Cap?
Yes, for comprehensive building contracts the calculation is based on the building cost specified within the contract and the unencumbered value, at the commencement date of the relevant interest of the land on which the home is to be built.
- As an owner builder, is the unencumbered value calculated when I commenced construction?
No, for an owner builder the unencumbered value (house and land) is as at the date of completion of the home.
- What do I need to provide as confirmation of the value of my land?
A list of acceptable documents to confirm the value of your land can be found on the Lodgement Guide for the FHOG application form.
- To determine the total value of my home do I subtract the amount of the mortgage from the value of my home?
No, the total value is the unencumbered value of the property.
- What is meant by the term ‘unencumbered value’?
The total value of the property determined without regard to any encumbrance (eg: mortgage) to which the property is subject, or any scheme or arrangement that results in the reduction of the value of the property (eg child purchasing home from parents at a reduced price). Please refer to legislation for the full definition of unencumbered value.
