FHOG restricted to new homes in the Northern Territory

In the Northern Territory, the First Home Owners Grant (FHOG) is now only available for first home buyers entering into contracts to construct or purchase a new home.

As of 1 January, Northern Territorian first home buyers will only be able to access the grant if they purchase new, providing them with a $26,000 cash incentive to construct their own dwelling.

The NT Department of Treasury and Finance notes that this is to encourage the construction of dwellings.

There is no threshold on the value of the new home purchased, with first home buyers able to buy properties exceeding the previous $600,000 limit applied to established homes.

The FHOG is not means tested.

This brings the Northern Territory in line with the majority of other states and territories that do not offer a grant for established home purchases. Many, such as South Australia, phased out their established property FHOGs in mid-2014. Western Australia still retains a modest grant, of $3,000, for eligible first time buyers purchasing established homes.

Those claiming the Northern Territory FHOG must live in the property for a period of six continuous months within 12 months of the completion of the home.