Parrington-LogoParrington-LogoParrington-LogoParrington-Logo
  • About
  • Services
    • Home Loans & Investment Loans
    • Personal Loans
    • Business Loans
  • FAQ
  • Blog
  • Book A Call
  • 0458 688 886
✕
Navigating End of Your Fixed Mortgage
Navigating the End of Your Fixed-Rate Mortgage: A Step-by-Step Guide
December 4, 2023
Published by Kara Parrington on December 4, 2023
Categories
  • Home Loans
Tags
First Home Owners Grant SA

What is the First Home Owner Grant (FHOG)?

The First Home Owner Grant (FHOG) is a government scheme that provides financial assistance to eligible first-time home buyers. The amount that the FHOG offers varies depending on the state or territory in which you live, but it is typically between $10,000 and $20,000. In South Australia, the FHOG is $15,000.

To be eligible for the FHOG, you must meet certain criteria, such as:

  • You must be an Australian citizen or permanent resident.
  • You must be a first home buyer. This means that you have never owned a property in Australia before.
  • You must be purchasing a property within the price cap set by your state or territory.
  • You must intend to live in the property as your principal place of residence for at least 12 months after you purchase it.

You can apply for the FHOG through your state or territory revenue office. The grant will be paid to you when you settle on your property.

The FHOG can be used to help you buy a new or established home, house and land, or townhouse. It can also be used to help you build a new home.

The FHOG is a great way to save money when you’re buying your first home. It can help you reduce the amount of money you need to borrow and make it easier to afford your monthly repayments.

What are the First Home Owners Grants and Concessions in SA?

First home owners in South Australia are eligible for the following grants and concessions.

First Home Owner Grant (FHOG)

The FHOG is a one-off grant of $15,000 that is paid to eligible first home buyers when they purchase or build a new home in South Australia. The FHOG is available for properties valued up to $650,000 (or $575,000 if the contract was entered into before 15 June 2023).

Stamp duty concession

First home buyers in South Australia are also eligible for a stamp duty concession on the purchase of their first home. The amount of the concession depends on the value of the property. For example, first home buyers who purchase a property valued up to $650,000 will pay no stamp duty.

Concessions on energy and water bills

First home buyers in South Australia may also be eligible for concessions on their energy and water bills. To be eligible, you must be the owner of the property and you must live in it as your principal place of residence. You must also hold a valid Concession Card, Health Care Card or receive an eligible Centrelink payment to qualify for energy and water concessions.

How can I apply for the First Home Owner Grant in SA?

To apply for the First Home Owner Grant (FHOG) in South Australia, you can follow these steps:

  1. Check your eligibility. You can use the FHOG eligibility checker on the RevenueSA website to check if you are eligible for the grant.
  2. Gather your supporting documentation. This will include your contract of sale, your building contract (if you are building a new home), and evidence of your Australian citizenship or permanent residency.
  3. Complete the FHOG application form. You can download the application form from the RevenueSA website.
  4. Lodge your application. You can lodge your application online or by mail.

Once you have lodged your application, it will be processed by RevenueSA. If your application is approved, you will receive the FHOG payment within 14 days.

For an easier, less overwhelming process, our team at Parrington Finance can lodge this application for you. We’ll help you make sure that everything is completed correctly and you’re aware of all Terms & Conditions.

Help Me Lodge My Application

Here are some additional tips for applying for the FHOG in South Australia:

  • Apply early. The FHOG can be popular, so it is important to apply as soon as possible after you have signed a contract of sale or building contract.
  • Make sure your application is complete and accurate. Incomplete or inaccurate applications may delay your payment.
  • Keep a copy of your application and supporting documentation. You may need to provide this documentation to your lender or other financial institution.

If you have any questions about the FHOG application process, please contact our team of mortgage brokers on +61 458 688 886.

What state taxes and levies are payable each year on property in South Australia?

There are three state taxes and levies that are payable each year on property in South Australia:

  • Stamp duty is a tax that is paid when you purchase property. The amount of stamp duty you pay is based on the purchase price of the property. There are a number of exemptions and concessions available for stamp duty, such as for first home buyers and eligible seniors.
  • Land tax is an annual tax that is paid on the value of land that you own. The amount of land tax you pay is based on the unimproved value of your land, which is the value of the land without any buildings or improvements on it. There are a number of exemptions and concessions available for land tax, such as for your principal place of residence and certain types of rural land.
  • Emergency services levy is an annual levy that is paid on the value of all fixed property and some mobile property in South Australia. The money collected from the emergency services levy is used to fund the provision of emergency services in South Australia.

Here are some additional details about each of these taxes and levies:

Stamp duty

  • Stamp duty is calculated using a progressive tax scale, which means that the higher the purchase price of the property, the higher the rate of stamp duty that is payable.
  • There is a stamp duty surcharge that is payable on foreign investments in South Australian property.
  • You can use the RevenueSA stamp duty calculator to estimate the amount of stamp duty that you will need to pay.

Land tax

  • Land tax is payable on the unimproved value of land that you own, which is the value of the land without any buildings or improvements on it.
  • There is a land tax-free threshold, which means that you do not need to pay land tax if the unimproved value of your land is below the threshold.
  • There are a number of exemptions and concessions available for land tax, such as for your principal place of residence and certain types of rural land.
  • You can use the RevenueSA land tax calculator to estimate the amount of land tax that you will need to pay.

Emergency services levy

  • The emergency services levy is a flat rate levy that is payable on the value of all fixed property and some mobile property in South Australia.
  • The rate of the emergency services levy is set each year by the South Australian Government.
  • You can use the RevenueSA emergency services levy calculator to estimate the amount of emergency services levy that you will need to pay.

When do I pay the emergency services levy?

The emergency services levy in South Australia is payable annually. The due date for payment is usually in November, but the specific date varies from year to year. For the 2023-24 financial year, the due date for payment was 30th November 2023.

You will receive a notice of assessment from RevenueSA in the mail, which will tell you how much you owe and when it is due. You can pay the levy online, by phone, or by mail.

If you are unable to pay the levy in full by the due date, you can apply for an installment plan. To do this, you will need to contact RevenueSA.

If you do not pay the emergency services levy by the due date, you may be charged interest and penalties.

Here are some tips for paying the emergency services levy:

  • Make sure to keep your notice of assessment in a safe place so that you do not forget when the levy is due.
  • Set up a direct debit from your bank account so that the levy is paid automatically.
  • If you are unable to pay the levy in full by the due date, contact RevenueSA to apply for an installment plan.

How much is the emergency services levy?

The amount of emergency services levy that you pay depends on the value of your property and the land use category.

Fixed charge

There is a fixed charge of $50 per property. This charge does not apply to properties located in Regional Area 3 or to properties with a land use factor of special community use.

Variable charge

The variable charge is calculated using the following formula:

Variable charge = Capital value of property * Prescribed area factor * Prescribed land use factor * Prescribed levy rate

The prescribed area factors and prescribed land use factors are set by the South Australian Government. The prescribed levy rate is set each year in the State Budget.

Concessions

There are a number of concessions available for the emergency services levy, such as for pensioners, veterans, and people with disabilities.

When do I pay land tax?

The land tax assessment period in South Australia runs from 1 July to 30 June. You are liable to pay land tax if you own land in South Australia at midnight on 30 June.

Land tax assessments are issued from October each financial year. You will receive a land tax assessment notice in the mail, which will tell you how much you owe and when it is due.

What land tax exemptions, waivers or relief are available?

There are a number of land tax exemptions, waivers, and relief measures available in South Australia. These include:

  • Principal place of residence: You are exempt from land tax on your principal place of residence, which is the property where you live with your family.
  • Pensioners and veterans: You may be eligible for a land tax concession if you are a pensioner or veteran.
  • People with disabilities: You may be eligible for a land tax concession if you have a disability.
  • Charitable organisations: Charitable organisations are exempt from land tax on property that is used for charitable purposes.
  • Primary production land: You may be eligible for a land tax exemption or concession on primary production land.
  • Vacant land: You may be eligible for a land tax concession on vacant land if you are developing it for residential or commercial purposes.

Here are some additional details about some of the land tax exemptions, waivers, and relief measures that are available in South Australia:

 

Principal place of residence exemption:

  • To be eligible for the principal place of residence exemption, you must own and occupy the property as your principal place of residence.
  • You can only have one principal place of residence at a time.
  • If you rent out your principal place of residence, you will no longer be eligible for the exemption.

 

Pensioner and veteran concessions:

  • To be eligible for the pensioner and veteran concessions, you must be a pensioner or veteran and own and occupy the property as your principal place of residence.
  • The amount of the concession that you are eligible for will depend on your income and the value of your property.

 

People with disabilities concession:

  • To be eligible for the people with disabilities concession, you must have a disability and own and occupy the property as your principal place of residence.
  • The amount of the concession that you are eligible for will depend on the severity of your disability and the value of your property.

 

Charitable organisation exemption:

  • To be eligible for the charitable organisation exemption, the charitable organisation must own and occupy the property for charitable purposes.
  • The property must be used for charitable purposes at least 50% of the time.

 

Primary production land exemption and concession:

  • To be eligible for the primary production land exemption or concession, the land must be used for primary production purposes.
  • The amount of the exemption or concession that you are eligible for will depend on the type of primary production that you are undertaking and the value of your land.

 

Vacant land concession:

  • To be eligible for the vacant land concession, you must own the land and be developing it for residential or commercial purposes.
  • The concession is available for up to two years.

How much land tax do I pay if I am not eligible for an exemption, waiver or relief?

The amount of land tax you pay depends on the unimproved value of your land. The unimproved value is the value of the land without any buildings or improvements on it.

The land tax rates for the 2023-24 financial year are as follows:

Unimproved value Up to 

  • $400,000 –  0% 
  • $400,000 to $1,200,000 – 1.55% 
  • $1,200,000 to $2,000,000 – 1.9% 
  • $2,000,000 to $3,000,000 – 2.2%  
  • $3,000,000 and over – 2.5% 

For example, if the unimproved value of your land is $500,000, you would pay land tax of $1,575 (1.55% of $500,000).

It is important to note that these are just general guidelines.

If the property is not exempt, what are the tax free thresholds for land tax?

The land tax free threshold in South Australia for the 2023-24 financial year is $668,000. This means that you do not need to pay land tax if the unimproved value of your land is below this threshold.

If the unimproved value of your land is above the threshold, you will only pay land tax on the amount above the threshold. For example, if the unimproved value of your land is $700,000, you would only pay land tax on the $32,000 above the threshold.

Do I pay land tax if I am building a home?

Whether or not you pay land tax if you are building a home depends on a number of factors, including the value of your land, the stage of construction, and whether you are eligible for any exemptions.

Generally speaking, you will not pay land tax on your land while your home is under construction. This is because the land is considered to be “vacant” until the construction is completed and you move in.

However, there are a few exceptions to this rule. For example, if you have a permit to build a home but have not started construction, you may still be liable for land tax. Additionally, if you are building a home on a large parcel of land, you may be liable for land tax on the portion of the land that is not being used for construction.

If you are unsure whether or not you will be liable for land tax while you are building a home, you should contact RevenueSA. They will be able to assess your individual circumstances and provide you with advice.

Here are some additional things to keep in mind:

  • If you are building a home on vacant land, you may be eligible for a land tax concession. This concession is available for up to two years.
  • If you are building a home on land that is already developed, you may be eligible for a principal place of residence exemption. This exemption means that you will not pay land tax on your principal place of residence.


Stay on track with a hassle-free process. Contact Parrington Finance today. We’ll help you figure out the grants and commissions you’re eligible for and assist you with your First Home Owner Grant Application.

Reach Out To Us Now!
Share
0

Related posts

Navigating End of Your Fixed Mortgage
December 4, 2023

Navigating the End of Your Fixed-Rate Mortgage: A Step-by-Step Guide


Read more
November 17, 2023

5 Tips that can take the stress out of settlement day


Read more
November 17, 2023

5 ways to finance your renovation


Read more
parrington P

Locations


  • Aldinga
  • Happy Valley
  • McLaren Vale
  • Port Noarlunga

Services


  • Home Loans
  • Personal & Car Loans
  • Commercial Lending

Contact Us


PO BOX 338 Seaford SA 5169
+61 458 688 886
[email protected]

© 2022 Parrington Finance | All Rights Reserved | Developed by KOA Digital.