The Western Australian Government has announced changes to the First Home Owners Grant (FHOG) and Keystart loan eligibility criteria aimed to increase access to funds for first home buyers and stimulate construction.
The changes include:
- An increase to the FHOG from $10,000 to $15,000 for new homes up to the value of $750,000 (effective from 1 January, 2017 for 12 months). Increase applies to contracts for the purchase or construction of new homes including ‘off-the-plan’ apartments.
- Income thresholds for Keystart loan eligibility in metropolitan area, increased by up to $20,000 (refer table below).
|Keystart eligibility||Previous income limit (2016)||New income limit (2017)|
While no changes have been made to the FHOG for established homes, purchasers of existing dwellings will still have access to stamp duty concessions, which currently apply a discounted rate of duty for purchases up to $530,000.
Further information about the First Home Owners Grant (FHOG) including eligibility criteria, can be found here. Further information about Keystart eligibility, including income limits, purchase price caps and deposit requirements can be found here.