January 19, 2011
The Western Australia Department of Treasury and Finance offers a First Home Owner Grant and Stamp Duty concessions in order to enable home buyers to get into home ownership for the first time. In addition to these incentives, The Government of Western Australia’s Real Estate and Business Agents Supervisory Board offers assistance to first-time home buyers through the Home Buyers Assistance Account.
The nationwide First Home Owner Grant (FHOG) applies here and is intended to help first-timers with the costs associated with buying a home. This $7000 rebate is paid at settlement or shortly after, and was established to offset the Goods and Services Tax of July 2000. On 1 January 2010, the Western Australia government chose to implement a two-tier cap on home value in order for buyers to qualify for the FHOG. If the total value of the home and the land is over $750,000, the buyer will not receive the grant. There is an exception that applies to homes located north of Kalbarri Township, where the property value limit is $1,000,000.
When a home owner qualifies for the First Home Owner Grant, a Stamp Duty concession is also applies at certain levels, which lowers or even cancels the amount of tax a first-time buyer will pay on the property. If the value of the home and land combined is $500,000 or less ($300,000 or less if buying land only), there is no duty assessed under this program. Above these limits, the duty is applied at a reduced rate. More specific information about these rates is available on the Western Australia Department of Treasury and Finance’s web site.
Another incentive to help first-time home buyers enter the housing market is the Home Buyers Assistance Account, established by the Real Estate and Business Agents Supervisory Board (REBA). This grant gives first-time home buyers an additional $2000, provided the property’s total value is $400,000 or less. This program is intended to offset the various expenses first-timers run into when buying their new home.
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