The First Home Owners Grant (FHOG) in Australia is designed to encourage and assist home ownership across the country, and for eligible borrowers, it’s a great start to life as a property owner.
The grant differs in each state and territory; in most places, it applies to new homes only.
The Australian government’s First Home Owners Grant (FHOG) and other benefits are available to permanent residents as if they were citizens. Because NZ citizens are considered to be permanent residents of Australia, they are eligible for the grant.
FHOG does not consider NZ property for eligibility; it considers only property you’ve owned in Australia.
In this post, you will find helpful information on:
The Australian Government has a First Home Owners Grant (FHOG). The FHOG scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation. Under the scheme, a one-off grant is payable to first-time home owners who satisfy all the eligibility criteria.
Make sure you read the bottom of this post and transfer your money to Australia wisely, keeping more of your hard-earned cash.
If you are buying or building a new home, you may be eligible for the FHOG ($10,000) if you signed your contract on or after 1 July 2013.
Your new home must be valued at $750,000 or less and be a new home. The property must not have been previously sold as a place of residence, occupied as a home, or leased out or used for short-term accommodation, such as Airbnb.
Please note that the home price and FHOG amount vary from state to state. Check your state below.
You’re not eligible for the FHOG if you or your spouse or partner have already:
These criteria apply even if your spouse or partner is not an applicant with you for the FHOG.
You or your spouse/partner may still be eligible for the FHOG if you purchased property on or after 1 July 2000 and have not lived there as your home. For example, Tom bought his first property in July 2004. It was a house, and Tom has always rented it out. As he has never lived there himself, this house is not considered to be his first residential home, and he may be eligible for the FHOG.
In addition:
Anyone holding a permanent visa under s30(1) of the Migration Act 1958 is considered a permanent resident of Australia. New Zealanders holding a special category visa under s32 of the Migration Act 1958 are also eligible for the FHOG but must be physically in Australia at the time of settlement.
The ACT Government introduced the First Home Owner Grant (FHOG) on 1 July 2000. As of 1 January 2017, homes in our national capital are offered a $7,000 First Home Owner Grant. This applies to first-home buyers of new, substantially renovated, or off-the-plan properties valued up to $750,000. You must live in the property for the first year of owning it.
ACT first home buyers may also be eligible to defer payment of duty if they are also eligible for the First Home Owner Grant.
The FHOG is no longer available to purchase established homes. As of 1 January 2017, the FHOG is $7,000.
From 1 July 2017, to improve affordability for first-home buyers, the NSW government announced several reforms:
You must live in the home you buy for at least 6 months in the first year of owning the property in order to receive the grant.
You may also be eligible for an exemption from transfer duty if you buy a new home valued at up to $550,000 or vacant land of up to $350,000. You can get a concession on the transfer duty for new homes valued between $550,000 and $650,000 or vacant land valued between $350,000 and $450,000.
From 1 July 2017, the First Home Owner Grant Cap for new home purchases is $600,000; for a property where you enter into a contract to build or are an owner builder, the total value cannot exceed $750,000.
For eligible transactions made on or after 1 January 2016, the grant amount is $10,000.
The First Home Buyers Assistance scheme is an NSW Government initiative that provides exemptions or concessions on transfer duty for eligible NSW first home buyers. This includes vacant land on which you intend to build your first home.
The First Home Buyers Assistance scheme provides eligible purchasers with exemptions on transfer duty on new and existing homes valued up to $650,000 and concessions on duty for new and existing homes valued between $650,000 and $800,000.
Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $350,000 and will receive concessions on duty for vacant land valued between $350,000 and $450,000.
Here’s an example we completed:
Details entered: | |
Execution date Land usage Purchase price or value Is this a shared equity arrangement calculation? | 28/03/2018 Home $600,000 No |
Result: | |
Purchase duty amount Purchase duty savings | $0.00 $22,490.00 |
If you want to buy or build a new home, you can apply for a First Home Owner Grant (FHOG) of up to $26,000. A new home is one that has never been previously lived in or sold as a place of residence.
The Northern Territory offers several generous incentives to first-home buyers:
Find out more about the Northern Territory FHOG.
The Queensland FHOG is a state government initiative to help first homeowners get their new homes sooner. Depending on the date of your contract, you’ll get $15,000 or $20,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000). You can even buy off the plan or choose to build it yourself. It’s a great opportunity to buy or build a new home in our great state.
This grant offers $20,000 for eligible first-home buyers who are buying or building a new home up to the value of $750,000 – including off-the-plan homes. This amount applies to all building or purchasing contracts signed between 1 July 2016 and 31 December 2017; for contracts signed during this period, the Grant amount reverts back to the original $15,000.
Test your eligibility for the Queensland FHOG.
South Australia FHOG is a $15,000 one-off grant payable to eligible first homeowners on the purchase or construction of a new home, to the value of $575,000. You must live in the property for at least 6 months in the first year of owning it to be eligible for the grant.
If you are buying an off-the-plan apartment that meets the required criteria, you may also be eligible for an Off-the-plan Concession on stamp duty that is capped at $21,330.
South Australia also has grants of up to $7,000 for established homes, depending on the area and buyer.
Find out more about the South Australia FHOG.
From 1 January 2016 to 30 June 2018, the First Home Owner Grant is $20,000 for buying a new “spec” home, off-the-plan home, or owner/builder home. After 30 June 2018, the grant will revert to being just a $10,000 payment.
From 1 July 2013, a $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home. Your home can be a house, townhouse, apartment, unit or similar, but it must be valued at $750,000 or less and be the first sale of the property as residential premises. It cannot be an investment property or a holiday house.
The FHOG is $20,000 for new homes built in regional Victoria and valued up to $750,000, with contracts signed from 1 July 2017 to 30 June 2020.
In addition, first-home buyers may be eligible for various concessions on their stamp duty:
The FHOG is a one-off payment to encourage and assist first-home buyers in buying or building residential property for use as their principal place of residence.
Eligible first-home buyers can receive a First Home Owner Grant of up to $10,000 for buying or building a new home. Homes south of the 26th parallel (i.e. all of the Perth metropolitan area) can have a purchase price of up to $750,000, and homes located north of the 26th parallel can be valued at up to $1 million.
On 27 December 2016, A $5,000 boost payment became available to eligible first-home buyers who entered into a contract between 1 January and 30 June 2017 to purchase or construct a new home and owner builders who commenced laying the foundations of their home between those dates.
Eligible first-home buyers can also apply for the Home Buyers Assistance Account, which is a grant of up to $2,000 to cover the incidental expenses of purchasing an established or partially built home through a licensed real estate agent. It is available for properties with a purchase price of up to $400,000.
Grants and concessions on stamp duty have a tendency to change, usually without much notice. Make sure you keep up to date with what’s available in your state and double-check eligibility requirements right before you buy.
Make sure you keep more of your hard-earned cash when you transfer your money to Australia to buy your new home. Use an online money transfer company instead of your bank and save $ 1,000.
To give you an idea of how much you could save, XE has made a recent comparison with three major New Zealand banks for a $1,200,000 NZD / AUD transfer. XE would have saved you between $9,070 and $25,870, depending on which bank you use.
Find out more here in my foreign exchange post…
The below posts might interest you:
If you’ve read the above content and the answer to your question isn’t there, please write a comment below, and I’ll research the answer for you.
If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
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Vin
May 10, 2023 at 6:53 pmHi there,
I purchased a section in Melbourne as an investment property 5 years ago but did not build the house on it and sold it. I did not make any profit on it.
Now i am moving to Melbourne permanently after selling my house. If i buy another section to build a house, would i be exempt from Stamp duty and would i be eligible for first home grant?
—————————-
My uncle is planning to move to Melbourne, he has 3 houses in New Zealand, can he still get NZ super even though his house values are over 3 mil?
JJ Smith
May 11, 2023 at 9:36 amHi Vin,
Thanks for your comment.
Both the FHOG and stamp duty waiver are for first-home buyers (property located in Australia), so you will not be eligible because you have already owned a property in Australia.
Regarding your uncle, having assets over 3 million will put him over the asset threshold for the Australian pension. Here is more information: https://www.movingtoaustralia.co.nz/australian-age-pension/.
Sorry, the above wasn’t better news.
Thanks
Susie
August 18, 2022 at 6:20 pmWhen we move to Australia we intend on transferring our KiwiSaver over too. Can this be used over there to buy our first home? Thanks
JJ Smith
August 19, 2022 at 9:45 amHi Susie,
Thanks for your comment.
I’ve only recently discovered that you can use your Super for a home deposit in Australia under the First home super saver scheme (FHSS): https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/.
I’m still researching which schemes allow you to use the FHSS and then I will be able to complete my post about it.
I should have this done by early next week and I’ll send you the link when it’s ready.
Thanks
Chris
April 22, 2022 at 1:28 amHi JJ,
Just wondering if you hold a NZ passport and living and working in Australia. Are you eligible for FHOG in QLD?
Thanks,
Chris
JJ Smith
May 12, 2022 at 11:31 pmHi Chris,
Thank you for your comment and sorry for the delay in replying.
Yes you are eligible for the FHOG as a NZ citizen if you haven’t owned a property in Australia before.
Check out these two posts if you haven’t already:
– https://www.movingtoaustralia.co.nz/buying-a-house-in-australia/
– https://www.movingtoaustralia.co.nz/australian-mortgage/
Please feel free to email me back any further questions you have.
Good luck with your move.
Tracy Allan
January 28, 2021 at 12:09 amHey there,
I have been living in Aussie for a few years and just sold my property in NZ and am needing to bring the money over. Just wondering if you know much about whether I will be required to pay tax in aussie? If so do you know of any tax accounts that know how NZ – Aus tax etc
JJ Smith
February 4, 2021 at 1:46 amHi Tracy,
Thank you for your comment.
Unfortunately, I’m not 100% sure if you do or not. I believe you pay tax in NZ so don’t have to in Australia.
I’ve CC’d Stela from Taxback.com who should be able to answer your question.
Taxback.com are my go to accountants for anything NZ or Australia related, as they have offices in both countries and deal with New Zealanders living in Australia and vice versa all the time.
Make sure you setup an account with XE or OFX, as they will save you hundreds to thousands with rates that the banks will never match (https://www.movingtoaustralia.co.nz/money/foreign-exchange).
Please feel free to email me back any further questions you have.
Thanks
Stela Radeva
February 17, 2021 at 10:16 pmDear Tracy,
Thank you for your question. I would love to help, but will need some more information to provide and adequate solution.
I will look into the double taxation agreement between Australia and New Zealand and get our tax accountant’s advice on this.
By law foreign income that is exempt from Australian tax may still be taken into account to work out the amount of tax you have to pay on your other income.
Did you pay any tax in New Zealand, I believe NZ does not tax capital gains?
I will get back to you with more information soon.
Stu Mountjoy
July 7, 2020 at 10:20 amHi JJ, thank you for the wonderful site – a friend of mine has lived in Australia for at least one year, she is from NZ (citizen), apart from needing a VISA if she takes out a loan, does she need a VISA in order to purchase a property in Australia, regardless of applying for the FHOG or not? Does the VISA just apply to loans, or do you ALSO need it for buying outright, for a place you will live in?
JJ Smith
July 21, 2020 at 12:23 amHi Stu,
Thank you for your comment. Sorry for the delay in replying.
I will forward your query onto Commonwealth and ask them, as I believe the Special Category Visa (SCV) is sufficient to buy a home and get a loan in Australia.
I will forward you their reply.
Thanks
Rechelle Dunn
August 27, 2019 at 9:10 amHi,
I am an Australian citizen and moved to Perth from eastern states in 2007. I lived in Perth up until 2017 and have now moved to nz. I wish to return to Perth in a number of years down the track. I am wanting to know not living or working in Australia now am I still eligible for first home owners grant as I won’t be able to live in it straight away?
Also what sort of deposit would I need for a 450k house if I am not living or working in Australia.
Hope you can help shed some light on this situation.
Thanks for taking the time to read this.
JJ Smith
August 27, 2019 at 10:06 pmHi Rachelle,
Thank you for your comment.
Unfortunately the FHOG is designed to encourage and assist first home buyers to buy or build a residential property for use as their principal place of residence. Therefore if you are not going to move into the house, then you will not qualify.
There is also no straight answer for how much deposit you will need to pay as it varies lender to lender.
You will normally need to put down a deposit that is equal to at least 5% of the sale price to buy a house. For banks, that’s usually the lowest deposit they will entertain – although many will require significantly more. A 5% deposit on a $450,000 loan equates to $22,500.
That said there is also additional cost you need to plan for e.g. stamp duty, lenders mortgage insurance (LMI) and professional fees such as conveyancing.
Used to mitigate the risk of lending money to someone with little savings, the one-off LMI fee is generally applied to borrowers with a deposit that’s less than 20% of the purchase price. At 95% for a family home, LMI can add up to 5%. Different lenders negotiate different LMI premiums and it can be worthwhile to shop around. A mortgage broker can help with this.
In today’s rapidly changing markets, waiting a few extra months to save additional money to avoid paying mortgage insurance might mean that the properties in your price range increase in value by much more than the cost of the insurance. Read more: https://www.realestate.com.au/advice/how-much-deposit-do-i-need-to-buy-first-home/.
Here you will be able to calculate out how much stamp duty you will need to pay in Western Australia: https://www.realestate.com.au/home-loans/how-much-is-stamp-duty-in-western-australia.
I believe you are on the right track for looking at buying real estate now, with the property market at a low. I recommend you read this article ‘Perth property prices could tick upwards in 2020’: https://www.domain.com.au/news/perth-property-prices-could-tick-upwards-in-2020-new-forecast-851915/.
One way to save yourself money is registering with an online foreign exchange company, who will save you transfer fees and give you a better rate than banks: https://www.movingtoaustralia.co.nz/buying-a-house-in-australia/.
Please feel free to email me back any further questions you have.
Nick Young
May 23, 2019 at 1:26 amHi JJ Smith,
I want to sell my house in NZ and move the money into an Australian bank account with the intention of moving to Australia in a year or two. Is this going to be a disadvantage to me because I wish to apply for the FHOG and am concerned about possible tax implications?
My concern is that the NZ economy is about to collapse and I need to weigh up any disadvantages between keeping the money here or transferring it to Australia.
Any information you could give would be much appreciated,
Thanks,
Nick
JJ Smith
May 23, 2019 at 2:12 amHi Nick,
Thank you for your comment.
Here is a link so you can setup an Australian bank account from NZ. I recommend you contact them before you transfer the money to make sure it’s ok that you will not be visiting a branch until the next time you are in Australia: https://www.commbank.com.au/personal/can/moving-to-australia/setting-up-your-banking.html. The customer service team should get in touch with you after you have completed your registration.
Regarding tax obligations read this article: https://www.beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
From all the research I have done on the FHOG, it doesn’t take into consideration how much money you have or make.
Lastly but most importantly, make sure you read this post and register with XE or OFX as they will save you hundreds to thousands when transferring your money to Australia: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Please let me know if I can help in any other way.
Amy
April 11, 2019 at 10:54 pmHi. I’ve just been reading your website and wondered if you might be able to help with something. My sister currently lives in Sydney – she first moved there 5 years ago. She works in various places around the world for a few months at a time but treats Sydney as home and spends probably 1/3 of her time there. She is looking to buy property but we are confused about the eligibility requirements for first home buyer grants and the assistance scheme. She’s been told she has to be a permanent resident in order to be eligible but your website suggests NZ citizens (which she is) are considered an Aus permanent resident possibly anyway for first home buyer grants? Just wondering if you could clarify? Brokers there seem pretty confused / or are confusing to understand… by the situation. Thanks!
JJ Smith
April 11, 2019 at 10:57 pmHi Amy,
Please read the information on this link which relates to the FHOG in NSW: https://www.revenue.nsw.gov.au/help-centre/resources-library/ofh001.pdf.
Here it states in Evidence of Australian citizenship or permanent residency that they accept New Zealand passports. Also in the definitions of terms used it defines a Permanent resident as a person who holds a permanent residency visa (under section 30 of the Migration Act 1958 of the Commonwealth) or a New Zealand citizen who is the holder of a special category visa (under section 32 of the Migration Act 1958). Take this to your broker.
You can check if they are a approved agent here: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/approved-agents.
The only question I have is if your sister will meet the residence requirement: at least one applicant must reside in the home as their principal place of residence for a continuous period of at least six months commencing within 12 months of completion of the eligible transaction.
Hope the above helps.
Thanks JJ
Carla Bayliss
March 22, 2019 at 5:56 amIs there a stand down period for New Zealanders taking up permanent residency in Australia, before being able to get the FHOG? In other words, how long do you have to be a permanent resident in Australia before you can apply for the FHOG?
thanks Carla
JJ Smith
March 24, 2019 at 10:00 pmHi Carla,
Thank you for your comment.
The FHOG is available to New Zealanders on an SCV, you don’t have to become an Australian Permanent Resident to get it. I haven’t been able to find anything about a stand down period and I’ve read everything that’s online about the FHOG.
This is what it says under citizenship for a FHOG in Queensland:
A permanent resident holds a permanent visa, or is a New Zealand citizen with a special category visa, as defined by the Migration Act 1958 (Cwlth).
You should double check the conditions of the FHOG for the state you are moving to and please let me know if you find anything contrary to the above.
Good luck with your move.
Chrissy
February 25, 2019 at 12:55 amHi, myself and partner are seriously wanting to sell our home here in Dunedin and move to sunshine coast to be closer to daughter. We are early 60s and have 4 -5 years of work to get to 65y. Wondering if we could buy new an get First home assistance or buy cash, don’t know the laws for kiwi new arrivals. We also wanted to know if we are able to get (protected scv ), which would give pension etc as we were in Australia 1998 to 2003, don’t know what approach to do, Maybe we too old to start a move. Any ideas, Chrissy
Chrissy
February 26, 2019 at 3:51 amHi JJ.
I rung social services international authority. And said we would fall into the protected svc. But don’t know the full benefits.
Cheers Chrissy
JJ Smith
February 26, 2019 at 3:55 amHi Chrissy,
Thank you for your email. That info did really help. Here’s what I’ve found.
Yes you should be able to apply for a first home owner grant as long as you are eligible, e.g. are buying or building a new house, unit or townhouse (valued at less than $750,000), have not previously owned a property in Australia and you are moving into the home.
Test your eligibility for the Queensland FHOG here: https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant/first-home-eligibility-test.
Regarding pension, in short, yes you are going to be able to receive the pension because you are eligible for a protected SCV. Long explanation below.
Since you meet the protected SCV criteria and will be living in Australia, you are an Australian resident for social security purposes. It is a basic qualification or claim requirement for almost all pensions, allowances and benefits that persons must be Australian residents.
For some social security payments there are additional residency-related requirements. For income support payments, such as pensions and allowances, a waiting period applies restricting access until persons have been permanent residents in Australia for a certain number of years. Family assistance payments generally have no waiting period and are available to eligible permanent visa holders and SCV holders (protected and non-protected) immediately upon arrival in Australia.
Under Australia’s international social security agreement with New Zealand, New Zealand citizens living in Australia can apply for the Australian Age Pension (if over the age of 65), Disability Support Pension (DSP) (if they are severely disabled) and Carer Payment (if they are caring for a partner on DSP), irrespective of whether they are protected or non-protected SCV holders. The residency requirements for the Age Pension require a total period of time lived in Australia and/or periods of Working Age Residence (Working Age Residency refers to residency between the ages of 20 and 65) in New Zealand of more than ten years. For DSP, the person must have had at least ten years of residence in Australia or New Zealand, become severely disabled while living in Australia or New Zealand and resided in Australia for at least one year. For Carer Payment, an individual must have lived in Australia and/or New Zealand for more than two years.
On top of the above, Protected SCVs are given a direct pathway to citizenship. These New Zealanders are, as far we’re aware, the only group of people that can apply for citizenship without holding or needing to apply for permanent residency first. It costs approximately $285.
As you are planning on selling your home in Dunedin to buy in Australia it is important that you read this article on foreign exchange, as it will save you a lot of money: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Please feel free to email me back any further questions you have.
Good luck with your move.
kav
August 1, 2018 at 3:18 amHi JJ
Love your website, thank you 🙂
We are thinking if moving from Wellington to Sunshine Coast in search of warmer weather and wondered if the first home grant still applies if we own a house here?
Thanks heaps 🙂
Kav
JJ Smith
September 5, 2018 at 10:39 pmHi Kav,
Thank you for your comment. So sorry for the delay in replying. I’ve only just seen your comment because of spam.
Great news is the first home buyers grant does still apply even if you own a home in NZ! To be eligible for the grant:
– You do need to be an Australian citizen or permanent resident (or applying with someone who is).
– You or your spouse must not have previously owned property in Australia that you lived in.
– You must be buying or building a brand new home.
– The value of the home including the land is less than $750,000.
– You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.
The value of the grant depends is $15,000 for contracts dated 1 July 2018 or later.
This is a fantastic grant by the Australian Government!
Thanks,
JJ Smtih