As part of the State Budget 2008 (SA), The Treasurer announced the introduction of a First Home Bonus Grant (FHBG) for first home buyers who have entered into a first home contract on or after 5 June 2008 and for owner builders who commence construction on or after 5 June 2008, subject to applicants meeting the eligibility criteria for the FHOG.
The FHBG replaces the Stamp Duty First Home Concession Scheme.
Who is eligible to receive the First Home Bonus Grant?
The FHBG is an additional payment for first home buyers who qualify to receive a First Home Owner Grant where the market value of the property does not exceed $450,000.
How much is the First Home Bonus Grant?
A FHBG of $4,000 is available for first home purchases with a market value of up to $400,000 and phases out for property with market values between $400,000 and $450,000 by $8 for every $100 in excess of $400,000.
The FHBG is in addition to the $7,000 First Home Owner Grant.
The amount of the FHBG will be determined by the market value of the property which:
in the case of a contract for the purchase of a home is the consideration for the purchase of a home, or, where that consideration is less than the market value, then the market value of the property.
in the case of a comprehensive building contract is the sum of the consideration for the building contract and the market value of the property on which the home is to be built as at the time when the contract is made, or, where the consideration for the building contract is less than the actual costs, the sum of the actual costs to build the home and the market value of the property on which the home is to be built as at the time the building contract is made.
in the case of an owner builder is the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.
Note: In the case of a farming property the market value of the property will be determined on the value of the home and curtilage area or that part of the land that is to constitute the site and curtilage of a home that is to be built on that site.
To determine the amount of the FHBG that you may be eligible for, use the First Home Bonus Calculator.
How is the market value determined ?
The Commissioner may approve or adopt any method he considers reasonable for the purposes of determining:
in the case of a contract for the purchase of the home, the market value of the home, which will in the first instance involve seeking valuation advice from the Valuer General.
in the case of a comprehensive building contract, the actual costs to build the home and the market value of the property on which the home is to be built. In relation to the market value of the property on which the home is to be built, the Commissioner will in the first instance seek valuation advice from the Valuer General.
in the case of an owner builder, the market value of the property, which will in the first instance involve seeking valuation advice from the Valuer General.
Replacement Contracts:
If you have entered into a contract for either (i) the purchase of the same home or (ii) to build the same or substantially similar home on or after 5 June 2008 that replaces a contract made prior to 5 June 2008, you will not be eligible to receive the FHBG.
How do I apply ?
if you qualify for it I am able to get all of this organised for you.
When will the FHBG be paid ?
The Addendum to claim the FHBG will be processed with the First Home Owner Grant Application and in most cases will be paid as one total payment. Should there be a query in relation to the FHBG, then this payment may be made after the First Home Owner Grant of $7,000 has been paid.