What homebuyers grant means for you
Specific details of the government's new homebuyer grants are yet to be released - but they're already causing a frenzy among those keen to get their foot on the property ladder.
The multi-billion dollar stimulus package is being designed to boost the economy amid fears the construction industry was set for a post-coronavirus slump.
While Treasurer Josh Frydenberg is yet to release details, so far, we know that new home construction and major renovation projects are both being considered for new cash grants, while the construction sector could also be in line for separate stimulus measures.
"We are more interested in the larger projects and new home builds and things like that," Prime Minister Scott Morrison told 2GB on Monday morning.
"We are looking at a bit of drop off in that current home building that's going on. That's not good for tradies and not good for jobs.
"A big part of coming out of the COVID-19 crisis is our infrastructure spending."
While specifics of the grants are still unknown, it is understood to focus on new builds and certain types of home renovations.
And crucially, it won't be limited to first home buyers only.
Sky News political editor Andrew Clennell revealed yesterday that the plan would be detailed this week, in a bid to prop up the economically crucial home-building sector and save construction jobs.
"This will be across the board - not just for first homebuyers - as the government looks to prevent a 30 to 50 per cent drop in residential construction," Clennell said on Sky News.
WHAT DO YOU GET NOW?
While the new plan will be welcomed by many would-be property buyers, a number of other grants and concessions are already available across the country.
According to the federal government, The First Home Owner Grant (FHOG) scheme was introduced on July 1, 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 homeowners that satisfy all the eligibility criteria, although some states also have other initiatives on offer.
For ACT residents, the FHOG is currently worth $7000 and it provides financial assistance to eligible people buying their first new or substantially renovated home.
To be eligible for the FHOG, you must be buying or building a new home, substantially renovated home or off-the-plan home, with a commencement date on or after January 1 2017, or building a home as an owner-builder, for which building started on or after January 1, 2017
the total value of the property (home plus land) must be $750,000 or less
As a first homebuyer in NSW, you may be eligible for several benefits.
Under the First Home Buyers Assistance Scheme, you might be offered full or partial exemption on transfer duty on homes of no more than $800,000
There's also the First Home Owner Grant (New Home) package, which includes a $10,000 grant towards the purchase price, in addition to the First Home Buyers Assistance Scheme benefits.
To access the grant, you must be buying or building your first new home which can't be worth more than $750,000.
There are a range of government grants, concessions or rebates available to eligible NT locals.
First homeowners may be able to access the $10,000 first homeowner grant to buy or build a new home in the territory, may be eligible for a discount of up to $23,928.60 off stamp duty on an established home, a $10,000 home renovation grant or a $2000 grant to buy household goods.
If you are aged over 60, a pensioner or a carer holding a Northern Territory Pensioner and Carer Concession card, you can apply for $10,000 in stamp duty relief, while low or middle income earners can apply for the Homebuyer Initiative or HomeBuild Access schemes.
Other benefits include the BuildBonus grant, which is worth $20,000 regardless of prior ownership, and the Territory Home Owner Discount which will knock up to $18,601 off stamp duty if you are buying an established home, a new home or land to build a new home in the Northern Territory.
The Queensland First Home Owners' Grant is a state government initiative to help first homeowners to get their new first home sooner.
If your contract is dated July 1 2018 or later, you can get $15,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000).
The grant is paid per new home, not to each of the applicants for the same home.
SA residents may be eligible for a range of concessions, including the Housing Construction Grant, First Home Bonus Grant, First Home Owners Boost and the stamp duty First Home Concession schemes.
A $20,000 first homeowner grant is available to eligible applicants who purchase or build a new home in Tasmania, while first home buyers purchasing an established home may be eligible for the First Home Owner duty concession of 50 per cent discount, on eligible established homes with a dutiable value of $400,000 or less.
A $10,000 First Home Owner Grant is available when you buy or build your first new home in the state.
The FHOG is $20,000 for new homes built in regional Victoria, for contracts signed from July 1, 2017 to June 30, 2021.
Your first home can be a house, townhouse, apartment, unit or similar but it must be valued at $750,000 or less, be the first sale of the property as residential premises and the home must be less than five years old.
The $10,000 first homeowner grant is also available in WA for those buying or building new homes, and if you receive the grant, or would be eligible except that you are purchasing an established home, you may be eligible for the concessional first homeowner rate of duty.
Originally published as What homebuyers grant means for you