- Personal Finance»
- Mortgages & Loans
$30,000 First Home Builders Grant in Tasmania, Australia.
Thinking of buying a new house? Heard of the First home buyers grant on offer from the Government?
The Tasmanian Government on the 7th of November, in an effort to stimulate the slowly dying building industry, announced the First Home Builders Boost for first home owners purchasing a new home, or constructing a new home.
Previously a boost of $8,000 was on offer, this has now increased to $23,000. This boost combined with the First home owners grant of $7,000, is now an amazing combined total of $30,000 that the government is giving to first homeowners. This is the largest amount that has ever been on offer from any state government, for a first home buyer or builder.
The First home buyers grant is not means tested nor are there limits on the size of the property or the amount you spend. It was originally introduced to offset the costs associated with buying a new property and the introduction of the GST.
Since the date of the boosts announcement, vacant land has been rapidly changing hands and building contracts are getting signed just as quickly, therefore causing the building industry to enjoy an invigoration it hasn't felt in Tasmania, for a long time.
The $30,000 First home owners boost can be the difference between a home and just a block of land to some of Tasmania's first home buyers.
What makes up the $30,000
$7,000 - First Home Owners Grant
$23,000 - First Home Builders Boost
$30,000 - Total Payment
Recently, the Tasmanian Government announced that they would be extending the FHBG past the 31st Dec 2014.
It will however, decrease to $20,000 and then in July 2015, a further decrease to $10,000.
Who Can Get the Extra First Home Builders Boost?
The $23,000 (+$7,000 FHOG) Fist home builders boost on offer from the Tasmanian Government, is tied to the eligibility criteria of the First Home buyers Grant. If you don't qualify for that, then unfortunately you don't qualify for this boost either.
You must have signed your building contract after the 7th of November, 2013 and before the 31st of December, 2014. You cannot cancel and resign your contract to build if you signed before the 7th of November.
Always keep in mind that there is an election around March and things could all change again!
To get the $23,000 boost, you must be eligible for the $7,000 first home buyers grant and also be;
- Purchasing a newly constructed home that no-one has ever lived in.
- Constructing a new home with a building contract signed after the 7th November, 2013 or purchased a home and land package prior to the 31st Dec, 2014.
- Be an owner builder with building commencing between 7th November and 31st December.
There is also further criteria that must be satisfied to receive the First Home Builders Boost;
- Secure contracts to build or purchase a newly constructed home and enter into a binding contract between the 7th November, 2013 and 31st December, 2014.
- Your construction of the home must be completed with 24 months of signing the building contract. Your home is considered built when a certificate to reside is issued.
- The building of the home must begin within 26 weeks of the date of the contract to build being signed. Your home is considered to be underway with construction once the footings have been laid.
- The house must be constructed on land in Tasmania only.
- Must be a fixed structure and attached to your land, not a portable home.
- Meet all planning and local council requirements.
Am I Eligible for the $7000 First Home Owners Grant
**UPDATE - $7,000 First home owners grant was ceased on the 30th June, 2014, but can still be obtained for the First Home Builders Grant ***
To be eligible for the First home buyers grant and then also be able to apply for the first home builders boost, both you and your partner (if you have one) must also;
- Be a person and not a company.
- Be 18 years of age and over.
- Be an Australian Citizen or Permanent Resident (further conditions may apply).
- You must live in the newly constructed home within 12 months of the occupancy certificate being released, for 6 consecutive months. (Leaving your possessions in the home does not qualify. Living in the home is eating, sleeping and relaxing within the home).
- Have not received the first home owners grant previously.
- Not owned a home anywhere within Australia before July 1st, 2000.
- Never have entered into, or commenced a building contract, or be an owner builder before 1st July 2000.
- After the 1st July, 2000 not owned a home and occupied it for 6 months.
Note - Neither of the First home builders grants are means tested and are available to anyone who meets the above requirements.
Mortgages for Dummies
This easy to read, jargon free book covers everything you need to know when shopping for the biggest purchase you will ever make, your mortgage.
You'll be provided with proven advice on buying your home whether you're a first home buyer, renovator or just refinancing. Learn about fixed and non-fixed interest rates, what to look for when choosing a lender, how to prepare your credit report for your home loan application, match your income to your mortgage and a lot more.
Do I Pay Taxes on the Grant?
In short - NO - The First home builders boost of $30,000 is Tax free.
Initially it was created to help new home buyers with the cost of the GST.
Last rounds of $7,000 for Established Homes
The Government in the 2013/2014 budget have also announced on the 1st July, 2014 that the $7,000 available to first home buyers purchasing an established home in Tasmania, will no longer be available.
All contracts entered into before that date will still be eligible for the $7,000 first home buyers grant, when buying an established home.
This does not affect those building or purchasing a newly constructed home. The entire payment of $23,000 boost plus $7,000 first home builders grant will be available until the 31st of December 2014.
How do I Apply for the First Home Owners Grant?
The First home owners grant and boost are both administered by the state revenue office. Follow the link below for forms to fill out.
Forms are also available and can be lodged through approved financial institutions, this is only if you are lending money through them. You can also lodge the application forms at Service Tas.
When applying for the grant you will need to provide a standard 100 points of ID for all parties. There is also supporting documentation required on application:
- Signed copy of the comprehensive building contract.
- Evidence of construction commencing i.e. laying of foundations.
If you lodged your application with Service Tas:
- Proof of completion.
- OR certificate of occupancy.
Forms for Both First Home Builders Boost and Grant
How Do I Receive the FHB Grand and Boost?
If your application is approved by the state revenue office, you will receive a letter within 10 business days of your completed application (with all relevant supporting documents) being lodged by your Financial Institution, or yourself at Service Tasmania.
You will be advised if you've received approval for the $7,000 first home buyers grant. Included in your letter will also be a Deed of Agreement. If you have also applied for the first home builders boost of $23,000, you will need to sign, date and return the Deed of Agreement back to the State Revenue Office. Payment of the First home builders boost is conditional on you signing and dating this Deed of Agreement.
Usually the $30,000 payment is received by your Solicitor, Financial Institution, Conveyancer or directly into the applicants nominated bank account.
The State revenue office will make payment as instructed by your:
- Financial Institution that lodged your application.
- Your instructions if you applied at Service Tas.
When Will I Receive My Payment?
- Applications for the grant and boost made through your financial institution, will be received once the first draw down on the loan is made.
- Applications made at Service Tasmania will receive payment once a completed certificate of occupancy is received.
Do you think the first home buyers boost of $30,000 will help the Tasmanian building industry long term?
What Can I do If my Application Is Not Approved.
If your application is not approved, you have within 60 days from the date on your letter to appeal to the State Revenue Office. When lodging your objection to the Commissioners decision, you will need to state in writing why you feel the decision is wrong and outline your reasons.
Before lodging your appeal, read the information provided in the letter as well as the general information provided in the State Revenues office Web site.
© 2013 Anne