As part of the Intergovernmental Agreement on the reform of Commonwealth-State Financial Relations, the states and territories established the First Home Owners Grant (FHOG) in June 2000 to provide financial assistance to Australians buying their first home.
The FHOG was introduced on 1 July 2000 to offset the effect of the goods and services tax on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.
Under the scheme, a one-off grant of $15,000 will be given to first home owners who sign a contract to build or purchase a new home, and owner builders that commence laying foundations for the construction of a home up until 31 December 2017.
Following 31 December 2017, the grant amount will revert back to $10,000.
There is no longer a grant eligible for first home buyers who purchase an established home.