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First home owner grant cap

The first home owner grant no longer applies to properties valued over a certain amount. This is referred to as the first home owner grant cap (the cap).

If you entered into a contract between 1 July 2000 and 31 December 2009 to buy or build your first home, no cap was applied.

However, if you buy or build your first home on or after 1 January 2010, you can no longer claim the grant if the home is worth $750,000 or more or $1 million or more.

The $1 million cap applies to all transactions where the commencement date is on or after 1 January 2010 and on or before 30 March 2010.

The $750,000 cap applies to all transactions where the commencement date is on or after 31 March 2010.

The commencement date depends on the type of transaction being entered into.

 Type of transaction  Commencement date
Buying a home Date contract is made
Contract to build Date contract is made
Owner–builder Date when foundation is laid (or another date that we consider appropriate in the circumstances)

 

$1 million cap

If the commencement date is on or after 1 January 2010 and on or before 30 March 2010, and you answer yes to any of the following questions, you are not eligible for the grant.

 Type of transaction  Question
Buying a home
  • Is the consideration for the transaction $1M or more?
  • Is the unencumbered value of the home $1M or more?
Building a home (building contract)
  • Is the consideration for the building contract plus the unencumbered value of the land $1M or more?
Owner–builder
  • Is the consideration for the building of the home by the owner–builder plus the unencumbered value of the land $1M or more?

$750,000 cap

If the commencement date is on or after 31 March 2010, and you answer yes to any of the following questions, you are not eligible for the grant.

 Type of transaction  Question
Buying a home
  • Is the consideration for the transaction $750,000 or more?
  • Is the unencumbered value of the home $750,000 or more?
Building a home (building contract)
  • Is the consideration for the building contract plus the unencumbered value of the land $750,000 or more?
Owner–builder
  • Is the consideration for the building of the home by the owner–builder plus the unencumbered value of the land $750,000 or more?

Top call centre questions

I have owned or currently own an investment home. Am I eligible for the grant?

If you held an interest in residential property before 1 July 2000, regardless of how the property was used, you will not be eligible for the grant.

If you held or currently hold an interest in residential property after 1 July 2000 and the property was or is used solely for investment purposes, you may be eligible for the grant providing you give evidence showing you have not lived in it.

This evidence may include:

  • tenancy/lease agreements
  • current electricity/phone accounts
  • electoral roll enrolment details
  • tax return details.

We will review all documentation provided with the application. We will not make a determination without an application and supporting documentation.

When do I have to move into my home?

You must move into your home within 12 months of becoming the registered owner and you must live there for at least 6 months in order to keep the grant.

I would like to rent out my home for a short period before moving into it. Am I still eligible for the grant?

You may rent out your home before moving in; however, you must move into your home within 12 months of becoming the registered owner and live there for at least 6 months to be eligible for the grant.

Note: Renting out your home before moving in may disqualify you from receiving the transfer duty first home concession.

What if my circumstances change and I am not able to move into my home, or have to move out before I have lived there for 6 months?

You must tell us that you are unable to move into your home or have to move out of your home before you have lived there for 6 months.

Depending on your circumstances, you may have to pay back the grant since you are no longer eligible.

If I am applying with another joint applicant, do we both have to live in the home?

Yes. To be eligible for the grant, all applicants must live in the home.

Does my partner have to be included on the application?

Yes. If you have a spouse, they must be included on the application.

Each person who owns any part of your home must also be an applicant.

My spouse has owned a home before. Am I eligible for the grant?

If your spouse has previously owned a home they have lived in, you will not be eligible for the grant. If your spouse has owned a home before 1 July 2000, you will not be eligible for the grant.

I am not a permanent resident; however, my spouse is an Australian citizen. Does this stop us getting the grant?

No. You may still be eligible. Australian citizens, permanent residents, or a joint applicant with an Australian citizen or permanent resident are eligible for the grant, providing other eligibility requirements are met.

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Last reviewed 30 January 2012

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