The First Home Owner Grant scheme was introduced on 1 July 2000 to offset the effect of the GST 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 up to $7000 is payable to first home owners that satisfy all the eligibility criteria.

The Minister for Housing, The Hon Tanya Plibersek MP, has announced that from the beginning of 2010 state governments have the right to refuse the First Home Owner Grant to home buyers purchasing expensive houses. The caps can be set by the state governments.

For more information on the First Home Owner Grant click here.