No tax is payable on the First Home Owner Grant.
Eligible first home buyers can receive the grant regardless of their income, the area they are planing to buy / build or the value of their first home.

To be eligible for the additional $7000 grant until 31 December 2001 or the $3000 grant after 1 January 2002, you must first be eligible for the original $7000 grant.

Eligibility for the original $7000 grant

You must first satisfy all the requirements below:
" This is the first time you or your spouse/ de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory of Australia.
" You and your spouse/de facto have not owned before 1 July 2000 a residential property, jointly, separately or with some other person, in any State or Territory of Australia.
" You and your spouse/de facto have not owned on/after 1 July 2000 a residential property and occupied that property (other than the property to which your application relates) jointly, separately or with some other person in any State or Territory of Australia.
" Each applicant is a natural person and not a company or trust.
" Each applicant for the grant must be at least 16 years of age. The Chief Commissioner may allow an exemption from this requirement if satisfied the home will be occupied as the applicant's principal place of residence and the application does not form part of a scheme to circumvent eligibility or entitlement requirements.
" At least one applicant is a permanent resident or Australian citizen.
" At least one applicant will occupy the home as their principal place of residence within 12 months of settlement or construction.
" You have entered a contract for the purchase of a home on/after 1 July 2000 or signed a contract to build a home on/after 1 July 2000. In the case of an owner-builder, you commenced laying foundations on/after 1 July 2000.

Your first home

The home you are buying or building is required to be a building affixed to land that may lawfully be used as a place of residence and, is in the Chief Commissioner's opinion, a suitable building for use as a place of residence.

Penalties for giving false or misleading information
There are substantial penalties for making false or misleading statements in, or in connection with, an application.

OSR conducts investigations and compliance checks to ensure applicants are entitled to receive the grant.

A penalty of $11 000 may be imposed for knowingly making a false or misleading statement in, or in connection with, an application.

The Chief Commissioner of State Revenue can also demand repayment of the grant and impose a further penalty equal to the value of the grant paid.

Additional grant for new housing

An additional $7000 grant for contracts made between 9 March 2001 and 31 December 2001
OR
An additional $3000 grant for contracts made between 1 January 2002 and 30 June 2002

What is the additional grant for new homes?

The additional First Home Owner Grant provides for a grant, in addition to the original $7000 grant, for the construction or purchase of eligible new homes.

To be eligible for an additional grant, you must first be eligible for the original $7000 grant.
Where the contract is made (or in the case of owner builders where construction commences) between 9 March 2001 and 31 December 2001 (inclusive), the additional grant will be $7000.

Where the contract is made (or in the case of owner builders where construction commences) between 1 January 2002 and 30 June 2002 (inclusive), the additional grant will be $3000.

The additional grant will not be available for contracts made after 30 June 2002.

The existing $7 000 grant, which began 1 July 2000, will continue for new and existing homes.
- Eligible first home buyers purchasing or building new homes receive the additional grant and the existing First Home Owners Grant, regardless of their income level. The additional grant will not be available for contracts entered into for new homes after 30 June 2002.

- Where the purchase price of the home or the value of the construction contract is less than the total grants available the applicant will be entitled to grants equal to the value of the consideration.

- In the case of owner builders, the consideration includes the purchase price of materials used in the construction of the home and/or the value of any sub-contracts for work on the construction (but not the value of the owner's labour).

- First Home Owner Grants are not taxable.

- The additional grants are an initiative of the Commonwealth Government, which is providing funding for the extension of the scheme.

- In NSW, the First Home Owner Grant is administered by the Office of State Revenue.

What is a new home?

- Only new home purchases and constructions are eligible for the additional grant.

- New homes must fulfil all the requirements for the definition of
a "home" under the current First Home Owner Grant Act 2000 legislation.

- Where a newly completed home is being purchased, it must be the first sale of that home.

- The home must also have never been previously occupied as a place of residence, including occupation by the builder, a tenant or other occupant.

- The purchaser must have proof, such as a statement from the vendor or other evidence, that the property meets these requirements.

- The first sale of a substantially renovated home, or a new home replacing demolished premises on the same land may be eligible. For further information, contact OSR.

- Home purchases and constructions which do not meet the requirements for the additional grant may nevertheless qualify for the existing $7000 First Home Owner Grant.|

Are you eligible for the additional grant?

To be eligible for the additional grant you must satisfy all of the eligibility requirements for the existing $7 000 First Home Owner Grant (which began on 1 July 2000) and the additional requirements detailed on this page.

See above for details of the existing $7000 grant.

You are eligible for an additional grant if you enter into a contract to buy or build a new home (as defined here) between 9 March 2001 and 30 June 2002 (inclusive).

For contracts signed between 9 March 2001 and 8 October 2001 (inclusive), construction of the home must commence within 16 weeks of entering into the contract.

The NSW Commissioner of State Revenue may approve the payment of the grant in circumstances where construction is not commenced within 16 weeks of the contract if satisfied the delay is beyond the control of both parties to the contract.

For contracts signed between 9 March 2001 and 8 October 2001 (inclusive), the contract must specify a completion date within 12 months of the date of commencement. If the completion date is not specified in the contract, completion must occur within 12 months of the construction commencement date.

For contracts signed between 9 October 2001 and 30 June 2002 (inclusive), construction of the home must commence within 26 weeks of entering into the contract.

The Commissioner may approve the payment of the grant in circumstances where construction is not commenced within 26 weeks of the contract if satisfied that the delay is beyond the control of both parties to the contract.

For contracts signed between 9 October 2001 and 30 June 2002 (inclusive), the contract must specify a completion date within 18 months of the date of commencement.

If the completion date is not specified in the contract, completion must occur within 18 months of the commencement date.

Owner builders

If you are an owner builder you will be eligible for an additional grant of $7000 if you:

- began building between 9 March 2001 and 8 October 2001 (inclusive) and complete construction by 30 April 2003
OR
- if you began building between 9 October 2001 and 31 December 2001 (inclusive); and complete construction by 31 December 2003.

You will be eligible for an additional grant of $3 000 if you:

- commence building between 1 January 2002 and 30 June 2002 (inclusive); and complete construction by 30 June 2004.

Off the plan purchases

If you purchase a new home "off-the-plan", you will be eligible for an additional grant of $7000 if:

- the contract to purchase is entered into between 9 March 2001 and 8 October 2001 (inclusive); and

- the contract provides for completion of construction by 30 April 2003

OR

- if the contract to purchase is entered into between 9 October 2001 and 31 December 2001 (inclusive); and

- the contract provides for completion of construction by 31 December 2003.

You will be eligible for an additional grant of $3 000 if:

- the contract to purchase is entered into between 1 January 2002 and 30 June 2002 (inclusive); and
- the contract provides for completion of construction by 30 June 2004.

How to apply
You can apply through your financial institution or through any OSR office.

Applications lodged with financial institutions will have the grant available for settlement or completion. If you are building your home under a contract, payment may be available after the first draw down.

Applications must be lodged within 12 months of completion or settlement of your new home.

The Commonwealth Government fully funds the provision of additional grants.

In addition, under an agreement between the Commonwealth and the States and Territories, the Commonwealth guarantees funding of First Home Owner Grants which have been paid to many thousands of people who have purchased their first home since the scheme commenced on 1 July 2000.

You can phone the Office of State Revenue in your state and ask to have an application posted.