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First Home Buyers

Wednesday, August 04, 2010

Step 1 - The First Homeowners Grant
Step 2 - State Benefits
Step 3 - First Home Saver Accounts

Home ownership is the Great Australian Dream and buying your first home is very exciting! There are a range of government benefits available to help you make your goal a little bit more affordable.

Step 1 – The First Homeowners Grant

In 2000 John Howard introduced the First Homeowners Grant. An amount of $7,000, it was introduced to help offset the cost of GST on home purchase. It is payable to first homeowners who satisfy the eligibility criteria. You can check whether you would be eligible, click here http://www.firsthome.gov.au/

Step 2 – State Benefits

There are other benefits available to first homebuyers on a state-by-state basis, so it is important that you check the benefits on your own state’s website, as listed below:

ACT: http://www.revenue.act.gov.au/home_buyer_assistance

NT: http://www.nt.gov.au/ntt/revenue/

QLD: http://www.osr.qld.gov.au/

SA: http://www.revenuesa.sa.gov.au/

TAS: http://www.treasury.tas.gov.au/

VIC: http://www.sro.vic.gov.au/sro/SROnav.nsf/Home+Page/SRO~Home+Page?open

WA:       http://www.dtf.wa.gov.au/cms/section.aspx?id=209&linkidentifier=id&itemid=209

Step 3 – First Home Saver Accounts

As well as the grant and other state benefits, the government in 2008 also set up a ‘First Home Saver Account’ as a concessionally taxed place for prospective home buyers to save their deposit. To open an account you must be aged between 18 and 65 and have not previously purchased or built a first home to live in. Some features of the account include:

•   The Government will contribute 17 per cent on the first $5,000 of individual contributions made each year.
•   Interest earned in the account is taxed at 15%
•   No minimum annual deposit is needed to keep the account open. The account can remain open for as long as necessary or until the account holder turns 65, at which time it must be closed.
•   There is a limit of $75,000 (indexed) on the overall account balance.
•   Withdrawals are not allowed from the account except for the purpose of buying a first home. Funds withdrawn that are not put towards a first home are deposited into your Super fund and cannot be accessed until you are 65.

You can find out more information about the First Home Saver accounts here.

- news.com.au