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Frequently Asked Questions:
First Home Owner Grant (FHOG)

General Information

What is the purpose of the First Home Owner Grant (FHOG)?
The Grant is designed to assist eligible first home buyers offset the impact of the Goods and Services Tax (GST) on home prices.

What is the definition of a home?
A home is a building, permanently affixed to the land that may lawfully be used as a principal place of residence, such as a newly constructed or established home, townhouse, villa, unit etc.

For further information on the meaning of a home, refer to Commissioners Guideline CG-HI-006.

What type of home qualifies for the Grant?
The home must be:

	-	situated in the Northern Territory;
	-	must be lawfully able to be used as a place of residence and be suitable for use for that purpose; and

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from 1 January 2010, the value of the home must be no more than $750 000. This includes the unencumbered value of the land on which a home is to be built.

Who is eligible for the Grant?
Click here for the eligibility criteria

How much is the Grant?
$7000 or, the consideration paid to buy or build the home if less than $7000. For example, if you buy or build a home for $5000, your Grant will be for that amount.

What is ‘consideration’?
The term consideration may be defined according to the following:

	-	For the purchase of a home, it refers to the amount paid for the purchase including GST payable in relation to the transaction.
	-	For a comprehensive home building contract, it refers to the total amount paid for the building work including any GST payable in relation to the transaction.
	-	For an owner-builder, it refers to the actual costs to the owner not including the owner's own labour.

Can I use the Grant as part of the deposit on my home?
No. The Grant is not paid until the settlement date if you apply through an Approved FHOG Agent or, after settlement if you apply through the Territory Revenue Office.

Does the Grant apply to renovations to an existing home?
No. Renovations, of any kind, do not qualify for the Grant.

If people buy a home together and neither has owned a home before, can they get more than one grant?
No. Only one Grant is payable for the same eligible transaction. This means that where two or more persons jointly purchase or build their first home, in which they will all reside as their principal place of residence, only one Grant will be paid.

If I receive the Grant, will it affect my eligibility for other home concessions or assistance?
No. You may still be eligible for other home concessions or assistance. For further information, please click here.

Will my/our income affect the Grant?
No, the Grant is not means tested however, from 1 January 2010 eligibility for the FHOG ceases if the value of the home is more than $750 000. This includes the unencumbered value of the land on which a home is to be built.

Will the value of my new home affect my eligibility?
From 1 January 2010, eligibility for the FHOG ceases if the value of the home is more than $750 000. This includes the unencumbered value of the land on which a home is to be built. No 'value' threshold applied prior to this date.

If I run a business from home, will I be eligible for the Grant?
Yes, as long as you meet the eligibility criteria.

I purchased my first home without a loan and intend to live in it as my principal place of residence. Will I be eligible for the Grant?
Yes, as long as you meet the eligibility criteria. The Grant is not means tested and is not conditional upon receiving financial assistance.

What happens when my circumstances change?
You must advise the Commissioner of Territory Revenue in writing within 30 days of your circumstances changing if you are not able to comply with any of the requirements. For example, if you are not able to reside in the home within twelve months either after the settlement date or the completion of construction.

How will the Government know if I have owned a home in Australia before, signed a contract to purchase or build my own home, or made any declarations that are not true?
The Commissioner of Territory Revenue has the authority, at any time after an application for the Grant is lodged, to authorise an investigation. This includes access to Land registery systems in other states. Applicants need to be aware that the penalty for making a false statement on an application is two years imprisonment.

Spouse

Who is a spouse?
A spouse is someone you are either legally married to or are in a de facto relationship with, at the time of making an application.

Who is a de facto?
A de facto is a person (of the same or opposite sex) to whom you are not married but with whom you have a marriage-like relationship at the time of making an application. For further details on the factors for determining the existence of a defacto relationship, refer to Commissioner's Guideline CG-HI-004.

When is a spouse considered an ex-spouse?
When the marriage is legally dissolved or in the case of a de facto partner, the parties are no longer in a marriage type relationship. For further details, refer to Commissioner’s Guidelines CG-HI-008 and CG-HI-004.

Spouse and Relevant Interest

My ex-spouse owned a home whilst we were married, will I still be eligible for the Grant?
If you were not registered as an owner of that home, your eligibility will not be affected.

My spouse owned a home prior to 1 July 2000, will I still be eligible for the Grant?
No. If your spouse previously owned a home prior to 1 July 2000 then you are not eligible for the grant, even if they did not reside in it.

If I am married and my spouse previously owned a home solely or together with another person after 1 July 2000, would I still be eligible for the Grant?
It depends on the whether your spouse occupied the home as his/her place of residence. If it was occupied then you are ineligible for the grant. If not, subject to the other criteria being satisfied you are eligible.

Eligible Transaction

What is an eligible transaction?

An eligible transaction is:

	-	a contract made on or after 1 July 2000 for the purchase of a home;
	-	a contract to build a home made on or after 1 July 2000; or
	-	in the case of an owner-builder, the laying of foundations commenced on or after 1 July 2000

From 1 January 2010, eligibility for the FHOG was limited to:

	-	the purchase of a home where the consideration or unencumbered value of the home at the date contract was made is no more than $750 000;
	-	a contract to build a home where the consideration plus the unencumbered value of the land at the time the contract was made is no more than $750 000; or
	-	in the case of an owner-builder, the unencumbered value of the home, including the land, at the date the home is ready for occupation is no more than $750 000.

What is considered to be the commencement date of an eligible transaction?

	-	For the purchase of a home, it is the date when the contract of sale is made.
	-	For a contract to build a home, it is the date when the contract is made.
	-	For an owner-builder, it is the date when building commences, ie. when the foundation for the home is laid.

What is considered to be the completion date of an eligible transaction?

	-	For the purchase of a home, it is the date when the purchaser becomes entitled to possession of the home under the contract and has obtained registered title to the land on which the home is situated.
	-	For a contract to build a home, it is the date that the building is ready for occupation as a place of residence (generally when and Occupancy Permit is issued).
	-	For an owner-builder, it is the date when the building is ready for occupation as a place of residence (generally when an Occupancy Permit is issued).

Residence Requirement

How long do I have to live in the home for?
You commence occupation of the home within twelve months of completion of the eligible transaction, or a longer period if approved by the Commissioner, and reside there for a continuous period of not less than six months.

In special circumstances, the Commissioner may extend the period for commencing occupation or reduce the continuous period of occupation but not waive it entirely. For further details, refer to Commissioner’s Guideline CG-HI-003.

After purchasing the home, the vendor wishes to rent the home back for three months from the date of settlement. If I occupy the home after this time and I have not applied for the Grant, will I still be eligible?
Yes, providing that all other eligibility criteria is met and an application is made within twelve months from the completion of the eligible transaction.

For further information on the implications of purchasing a home subject to an existing lease, refer to Commissioner's Guideline CG-HI-010.

The vendor wishes to rent the home back for twelve months from the date of settlement. If I occupy the home after this time, will I be eligible for the Grant?
No. You must take occupancy of the home within twelve months from the date of possession of the home. If the home is vacant at settlement, you have tweleve months from this date to commence occupation. If the home is subject to an existing of less than 12 months, it commences on the date of expiry of the lease. If the lease is for twelve months or more, it is not an eligible transaction for the purpose of FHOG unless the Commissioner extends the period for you to take possession of the home.

For further information on the implications of purchasing home subject to an existing lease, refer to Commissioner’s Guideline CG-HI-010.

I purchased a home with the intention of living in it but have been transferred interstate in my employment. I intend to live in the property upon my return in 24 months. Am I eligible for the Grant?
You must commence occupation of the home within twelve months from the date you took possession of the home (generally at settlement) and reside there for a continuous period of not less than six months. In special circumstances, the Commissioner can extend the period for commencing occupation. For further information, refer to Commissioner's Guideline CG-HI-003.

Vacant Land

If I own vacant land before 1 July 2000, am I eligible for the Grant?
Yes. Owning vacant land does not affect your eligibility for the Grant.

If I own land and allow my children to build on it, will they be eligible for the Grant?
Yes. Providing permission is given to them to build and occupy the home as their principal place of residence and they meet all the eligibility criteria.

I have purchased a block of land and intend to build a home on this land sometime in the future. Can I apply for the Grant now?
No. You are not entitled to the Grant unless you entered into a contract to build a home on the land or, if you are an owner-builder, have completed construction of a home.

Caravan and Transportable Homes

If I purchase a transportable home to erect on a vacant block of land and use it as my principal place of residence, will I be eligible for the Grant?
Yes, provided the home is affixed to the land and may lawfully be used as a place of residence. The transaction is deemed to commence on the date the contract to purchase the transportable home is made and is completed when the transportable home is ready for occupation as a place of residence.

Will I be eligible for the Grant if I intend to purchase and live in a caravan?
No. If the caravan is situated in a caravan park and you do not have a relevant interest in the land, you will not be eligible for the Grant.

Relevant Interests - Other scenarios

I own commercial properties but have never owned residential property. Will I still qualify for the Grant if I purchase a home?
Yes. Commercial property is not recognised as residential property.

I previously held an interest in a home as a beneficiary under a Will. Am I still eligible for the Grant?
If you obtained your interest prior to 1 July 2000, you are not eligible for the Grant because you have held a previous relevant interest. However, if you obtained your interest after 1 July 2000 and have not occupied the home as your principal place of residence, you may still be eligible for the Grant.

I have previously owned a home in another state or territory, but am purchasing my first home in the Northern Territory. Am I eligible for the Grant?
No. You are only eligible if you have not previously owned a home anywhere in Australia.

Legal Disability

I own a home, however, I intend to purchase a home as trustee or guardian for my child who suffers a legal disability. Will my child be eligible for the Grant?
The home must be held on trust exclusively for the child. The trustee or guardian may make an application on behalf of the child however; the child is considered to be the applicant and must meet the eligibility criteria to receive the Grant.

I intend to purchase a home as trustee for a person with a legal disability. Who must reside in the home?
Since the person with the legal disability will be considered the applicant, he or she must live in the home as their principal place of residence to be eligible for the Grant.

Payment of Grant

When will the Grant be paid?
The date of payment will depend on the type of transaction and with whom your application is lodged.

Type of transaction	Application through Approved FHOG Agent	Application through Territory Revenue Office
Purchasing a home	At settlement	When your name is registered on the title
Purchasing a home under a terms contract	Not applicable	When you are in possession of the property and instalments (excluding the deposit) of at least $7000 have been paid
Contract to build a home	When the foundations have been laid and progress payments (excluding the deposit) totalling at least $7000 has been paid	When the foundations have been laid and progress payments (excluding the deposit) of at least $7000 has been paid
Owner builder	When construction of the home has been completed	When construction of the home has been completed

Do I have to spend the Grant on my home?
No. If you are eligible for the Grant, the use of the grant funds is at the discretion of the applicant(s).

Lodgement of an Application

Where can I obtain the application forms?

• - from an Approved FHOG Agent;
• - from the Territory Revenue Office; or
• - by clicking here.

Where can I lodge the application form?

• - through an Approved FHOG Agent if seeking finance; or
• - with the Territory Revenue Office.

Is there a time limit to lodge an application?
Yes, the application must be submitted within twelve (12) months of the completion of the eligible transaction.

Objection and Appeal

If my application for the Grant has been rejected, can I have the decision reviewed?
Yes. If you are unhappy with the decision, you must submit your request for review as an objection in writing to Territory Revenue Office within 60 days from the date on which notice of the decision is given. Your request for review should set out in detail the grounds of the objection.

If I am unhappy with the outcome of the objection, can I appeal the decision?
Yes. You may have the decision treated as an appeal to the Local Court.