Update: see the latest post for the details of the extention in 2009 Federal Budget.
How much will I receive?
• $21,000 for new homes ($7000 First Home Owners Scheme grant + $14,000 First Home Owners Boost)
• $14,000 for existing homes ($7000 First Home Owners Scheme grant + $7000 First Home Owners Boost)
Note:
1. The Boost is not means tested and can be used to buy a property of any value.
2. The existing First Home Owner Grant will continue to be available to first home owners after 30 June 2009.

How do I apply for the First Home Owner Boost?
• To apply for the $7,000 First Home Owner Boost for an established home, first home owners only need to complete First Home Owner Grant application form;
• To apply for the $14,000 First Home Owner Boost for building a new home or purchasing a newly constructed home, first home owners need to complete:
First Home Owner Grant application form; and
Addendum to the First Home Owner Grant Application - Application to claim the $14 000 First Home Owners Boost for New Homes
Note:
1. Application forms for the Boost in other states are available on state and territory revenue office websites and must be lodged within 12 months of completion or settlement.
2. If you have already lodged your First Home Owner Grant application, you are required to complete and lodge the First Home Owners Boost addendum with the same agent you lodged the First Home Owner Grant application with for processing.

How will I be paid?
For a new home, the Boost will be paid in a lump sum, together with the First Home Owners Scheme grant, upon completion. In most cases, this is when a certificate of occupancy is provided.
For an existing home, the Boost will be paid in a lump sum, together with the First Home Owners Scheme grant, on settlement.
If you provide express consent, the Boost could also be used to offset against statutory levies and charges, for example stamp duty.

Eligibility criteria
• enter into a contract to purchase an existing home, construct or purchase a new home or buy 'off the plan' between 14 October 2008 and 30 June 2009 inclusive;
• Be a natural person (i.e., not a company or trust), at least 18 years of age and whose interest in the property is not held subject to a trust;
• At least one applicant is an Australian citizen or a permanent resident;
• At least one applicant will reside in the home as their principal place of residence for a continuous period of at least 6 months commencing within 12 months of completion of the eligible transaction;
• Not have previously received a First Home Owner Grant in any State or Territory of Australia;
• Not have previously owned or held a relevant interest in a residential property anywhere in Australia prior to 1 July 2000;
• Not have occupied for a continuous period of at least 6 months, a residential property in which they acquired a relevant interest on or after 1 July 2000 anywhere in Australia.

Additional eligibility criteria for First Home Owner Boost
Established homes
To be eligible to receive the $7,000 Boost for the purchase of an established home, first home buyers must have entered into a contract to purchase an established home between 14 October 2008 and 30 June 2009 (inclusive).

New homes
A newly-constructed home means a property that has never been sold by the builder/vendor, or been occupied as a residence by a tenant or other occupant. The purchaser must have proof, such as a statement from the vendor or other evidence, that the property meets these requirements for them to be eligible for the higher level of the First Home Owners Boost.

This includes:
• contracts to build a home
• homes bought 'off the plan'
• homes constructed by owner-builders
• purchase of homes that have been built but never sold or occupied, for example display homes.

Where a newly constructed home is being purchased, it must be the first sale of that home. The home must also have never been previously occupied as a place of residence, including occupation by the builder, a tenant or other occupant.

Substantially renovated homes may be considered as a new home. Where a substantially renovated home is being purchased, it must be the first sale of the home since it was substantially renovated. The home, since being substantially renovated, must also have never been previously occupied as a place of residence, including occupation by the builder, a tenant or other occupant.
Substantial renovations of a building are renovations where the entire building, or substantially all of the building, has been removed or replaced.
Note: Where the consideration is less than the total benefit available, the applicant will be entitled to an amount equal to the value of the consideration.

New homes being purchased under a contract
New homes being purchased under a contract
To be eligible to receive the $14,000 Boost for the purchase of a newly constructed home, first home buyers must have entered into a contract to purchase a newly constructed home between 14 October 2008 and 30 June 2009 (inclusive).

New homes being built under a building contract
To be eligible to receive the $14,000 Boost for building a new home, first home buyers must have entered into a contract to build a home between 14 October 2008 and 30 June 2009 (inclusive).

In addition:
• building starts within 26 weeks of signing the contract
• the contract must specify a completion date for building work within 18 months of the date of construction commencing or the actual completion of the home must be within 18 months.

In limited circumstances the Commissioner may approve an extension to the commencement and completion date where the delay was outside the control of the parties and could not have been foreseen at the time of entering into the contract.

New homes being purchased ‘off the plan’
To be eligible for the $14,000 Boost for purchasing a new home ’off the plan‘ the contract must be entered into between 14 October 2008 and 30 June 2009 (inclusive) and the contract must specify a completion date on or before 31 December 2010. If the contract does not make this stipulation, then the actual completion of the home must occur by 31 December 2010.

In limited circumstances the Commissioner may approve an extension to the completion date where the delay was outside the control of the parties and could not have been foreseen at the time of entering into the contract.

New homes being built by an owner builder
To be eligible for the $14,000 Boost for building a new home as an owner builder, construction (i.e. laying foundations) must commence between 14 October 2008 and 30 June 2009 (inclusive) and completion of the home must be within 18 months of commencement.

In limited circumstances the Commissioner may approve an extension to the completion date where the delay was outside the control of the applicant and could not have been foreseen at the time of commencement of construction.

Ineligible first homes
The First Home Owner Boost scheme will not apply when a:
• Contract to purchase or build a home replaces an earlier contract made before 14 October 2008 to purchase the same home or to build the same, or a substantially similar, home.
• Contract was entered into, or in the case of owner builders construction commenced before 14 October 2008.
• Contract was entered into, or in the case of owner builders construction commenced on or after 1 July 2009.

If you are a first home buyer who entered into a contract or commenced construction prior to 14 October 2008, you will not be eligible for the Boost. You will still be able to apply for the existing First Home Owners Scheme grant.

Refer to Commonwealth’s First Home Owner Boost.

Bear in mind, Prime Minister Kevin Rudd has suggested that the boost to the first home owners grant will not be extended beyond June 30.

2009 Federal budget:
1. The First Home Owner Boost will be extended until the end of 2009;
2. The boost will be halved from October 1 to $3500 from existing homes and $7000 for new homes.