First Home Owner Grant (FHOG)
In the State of Western Australia, all First Home Buyers have access to a First Home Buyer Grant.
The first home owner grant (FHOG) is a one-off grant payable to first home owners that satisfy all the eligibility criteria.
The 2015-16 State Budget included a measure which abolished the FHOG of up to $3,000 for the purchase of established homes.
This change will apply to contracts for the purchase of an established home entered into on or after 3 October 2015. First home owners who entered into a contract to purchase an existing home before that date will still be able to apply for and receive the FHOG and related first home owner rate of duty for a period of 12 months after completion of the eligible contract.
On or after 3 October 2015, purchasers of established homes will still be able to apply for the first home owner rate of duty if the value of the home is below the current threshold of $530,000.
The FHOG of up to $10,000 for ‘new’ homes will remain unchanged (including off the plan sales.)
First Home Owner Rate of Duty
When a home buyer is eligible, or would have been eligible, for the first home owner grant, a concessional rate of transfer duty will apply if the value of the dutiable property is below certain thresholds.
You may be entitled to receive the first home owner rate of duty for the acquisition of your home if you are eligible for the first home owner grant, or if you would have otherwise been eligible for the grant except that:
- no consideration was paid for the home; or
- you purchased an established home; or
- you are a resident of the Indian Ocean Territories.
Before making application for the first home owner rate of duty, you should lodge form F-FHOG1 ‘First Home Owner Grant Application and/or Pre-approval for First Home Owner Rate of Duty’ and obtain pre-approval for the rate.
Following notification that you have satisfied the pre-approval criteria, you must complete and submit the ‘First Home Owner Rate of Duty - for Assessment or Reassessment’ application form.
For vacant land, duty will initially be charged at the general rate. Once a house has been built on the land and the transaction is eligible to receive the first home owner grant, you can apply for a refund and a reassessment of the transaction at the first home owner rate of duty.
All applications must be made within 12 months of the completion date, or within 3 months of the date the first home owner grant is paid, whichever is later.
Shared Home Ownership Scheme arrangements (where Department of Housing contributes to the ownership) are also covered in this concession.
For more information, see the 'First Home Owner Rate of Duty' fact sheet.
As at 3 July 2014 the first home owner rate of duty applies to a dutiable transaction with a dutiable value of up to $530,000 for a house and land, or $400,000 for vacant land.
From 1 July 2008 to 2 July 2014 the first home owner rate of duty applies to a dutiable transaction with a dutiable value of up to $600,000 for a house and land, or $400,000 for vacant land.
If the property includes a home, as at 3 July 2014
Rate of Duty
$0 - $430,000
$430,001 - $530,000
$19.19 per $100 or part of $100 above $430,000