08/05/2025
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The First Home Owner Grant and Shared Equity Act 2000 is an Australian piece of legislation that was introduced to support people purchasing their first home. Here's a breakdown of what the Act covers:
1. First Home Owner Grant (FHOG)
The Act established the First Home Owner Grant scheme, which:
Provides a one-off, tax-free grant to eligible first-time homebuyers.
Is intended to offset the impact of the Goods and Services Tax (GST) on home ownership.
Is administered by individual states and territories, with specific eligibility criteria and grant amounts varying by jurisdiction.
Common eligibility criteria under the FHOG:
You must be a first-time home buyer who has never owned a home in Australia.
The home must be intended as your principal place of residence.
You must be an Australian citizen or permanent resident.
The value of the home must be below a certain cap, which varies by state or territory.
2. Shared Equity Arrangements
The original version of the Act also included provisions for shared equity schemes, though these have evolved over time and are often managed separately now. Shared equity arrangements allow:
A government or other partner to co-purchase a portion of the home.
The buyer to pay a reduced upfront cost, while eventually paying out the co-owner's share.
Purpose of the Act:
Encourage home ownership among first-time buyers.
Provide financial assistance.
Support the housing market and help address affordability concerns.
Each state and territory has its own implementation of the Act. For example:
In Western Australia, the Act is implemented by RevenueWA.
In Victoria, it's administered by the State Revenue Office under similar guidelines.
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