If you’re a first home buyer looking to purchase a property in WA, there are potentially 4 government incentives that might be available to you:

• The First Home Owners Grant
• The Home Guarantee Scheme
• The First Home Owner Rate (stamp duty concession), and
• Shared equity options.

In this blog, we’ll focus on the First Home Owners Grant and unpack a few common myths and facts. No jargon, no fluff—just the key info you need to save time and feel more prepared as you start your home buying journey.

❌ Myth #1: “You can use the grant for any first home”

✅ FACT: The First Home Owner Grant (FHOG) is a one-time payment of up to $10,000 to help eligible buyers build or buy their first new home in Western Australia.

The FHOG only applies to new residential properties. It doesn’t cover established homes, vacant land, holiday houses, business premises, or cosmetic renovations to an existing home.

So what counts as a new home?
It must be a home that’s never been lived in or sold before. This includes houses, apartments, townhouses, duplexes, or homes you build yourself.

IMPORTANT: If you’re buying off-the-plan, the grant is only available if you’re buying directly from the developer. If someone else has already bought it and is now selling it to you—even if it’s still brand new—you won’t be eligible for the FHOG.

❌ Myth #2: “There’s an income cap—you need to be a low-income earner to qualify.”

✅ FACT: There is no income or asset test for the First Home Owner Grant in WA. Your salary, savings, or how much you’ve got in the bank won’t affect your eligibility. What matters is your ownership history, not your financial position.

That means whether you’re earning $50,000 or $250,000, you can still apply for the full $10,000 grant, as long as:

• You (and your spouse or de facto partner, if you’re applying together) haven’t owned and lived in a residential property in Australia.
• You’re buying or building a brand-new home that meets the value cap.
• You meet the residency and citizenship requirements.

This makes the FHOG one of the few government schemes that’s truly open to a broad range of first home buyers.

❌ Myth #3: “Once I receive the grant, I can rent the place out.”

✅ FACT: Not immediately. One of the key conditions of receiving the First Home Owner Grant is that you must live in the property as your main residence for at least 6 continuous months, and you must start living there within 12 months of settlement (for a purchase) or completion (for a build).

This rule is in place to make sure the grant is used by genuine first home buyers intending to live in the property—not investors.

If you don’t meet this requirement and haven’t applied for an exemption or extension, you may be required to repay the full grant, and you could also be hit with penalties of up to $20,000. In some cases, you may also lose your stamp duty concession if it was linked to the grant.

💡 Important: If something unexpected happens—such as illness, job relocation, or family issues—that makes it hard for you to meet the requirement, you can apply to vary the condition. But you must notify RevenueWA within 30 days of becoming aware that you can’t meet the rule. Don’t ignore it or leave it too late.

❌ Myth #4: “The grant will be paid to me automatically.”

✅ FACT: The First Home Owner Grant is not automatic—you’ll need to submit a formal application to receive it.

You must apply within 12 months of the completion of your transaction. What counts as “completion” depends on your situation:

• If you’re buying a newly built home: Completion is when settlement occurs and you’re registered on the title.
• If you’re building: It’s when the home is finished and ready to move into.
• If you’re an owner-builder: You can apply once the foundations are laid.

You can apply through:

• Your lender (an Approved Agent) – This is often the easiest route as they can submit everything on your behalf during the loan process.
• Directly with RevenueWA – You can apply yourself via the FHOG portal or by completing the official F-FHOG1 application form.

❌ Myth #5: “If I’ve owned a home before, I can’t get the grant.”

✅ FACT: Not necessarily. Your eligibility depends on when you owned the property and whether you lived in it.

You may still qualify for the First Home Owner Grant if:

• You owned a property but never lived in it (e.g. an investment property that was always rented out),
• Or you owned property before 1 July 2000, even if you lived in it.

You won’t be eligible if:

• You’ve owned and lived in a residential property in Australia for 6 months or more, and that period started on or after 1 July 2004.
• You received the FHOG or first home duty concession in the past.

Also, keep in mind—your spouse or de facto partner’s history matters too. If either of you has received the grant before or lived in a home they owned after July 2000, you won’t be eligible as a couple.

💡 Tip: If you’re unsure whether your situation disqualifies you, it’s best to check before applying. Getting it wrong could result in the grant being clawed back later, with interest and penalties.

❌ Myth #6: “The value of the property doesn’t matter.”

✅ FACT: The value of the property does matter when it comes to the First Home Owner Grant.

There’s a maximum cap on how much the total value of your home and land can be:

• $750,000 if the property is south of the 26th parallel, which includes all Perth metro areas and most of WA.
• $1 million if the property is north of the 26th parallel, covering regions like Broome, Karratha, Port Hedland, and other northern towns.

This cap applies whether you’re:

• Buying a newly built home (turnkey or off-the-plan),
• Signing a building contract and purchasing land, or
• Building as an owner-builder.

💡 It’s important to know that the “total value” isn’t just the purchase price. It includes:

• The unencumbered value of the land at the time you enter the contract, and
• The construction cost of the home, including any upgrades or variations to the contract.

If you’re building as an owner-builder, the valuation is based on the completed value of the home once it’s ready to live in—not just the materials or build cost.

❌ Myth #7: “I can move in the house whenever it suits me”

✅ Fact: To keep the grant, you must:

• Move into the home within 12 months of settlement (or completion if you’re building), and
• Live in it as your main residence for at least 6 continuous months.

If something unexpected comes up – like health issues, delays with construction, or changes in personal circumstances—and you realise you won’t be able to meet these conditions, you must notify Revenue WA in writing:

• Within 30 days of knowing you can’t meet the requirement, or
• Within 30 days after the 12-month deadline ends (whichever is earlier).

You can apply to:

• Extend the time allowed to move in,
• Reduce the 6-month minimum period, or
• Request an exemption (for example, if you’re one of two applicants and only your co-owner will live there).

But don’t leave it too late—if you don’t tell Revenue WA and continue claiming the grant, you would be required to:

• Repay the full grant,
• Lose your eligibility for future FHOG applications, and
• Pay penalties of up to $20,000.

Quick checklist: Are you eligible?

✅ You’re 18 or older
✅ At least one applicant is an Australian citizen or permanent resident
✅ You’ve never owned and lived in a home in Australia
✅ You’re buying or building a new home
✅ The property value is below the cap
✅ You’ll live in the home for at least 6 months within the first 12 months

Final thoughts

The First Home Owner Grant can make a real difference in getting into your first home—but it’s important to understand the fine print before you apply. If you’re unsure whether you’re eligible or you want to go over your options, feel free to reach out. I’m always happy to walk through the details and help you make the best move.