Where is it going to? The grant isn't going anywhere but it is being reduced to normal levels from October 1. First-home owners who sign a contract to buy a home from that date will receive an extra $3500 instead of the current $7000 and those who buy a new home will be eligible for an extra $7000 instead of $14,000. After December 31, the First Home Owners Boost will stop and first-home buyers will be eligible only for the standard grant of $7000.

So if I buy a new home before October 1, the Government will give me $21,000 but if I leave it until 2010, I'll get only one-third of that? That's right. The First Home Owners boost was an incentive to stimulate the economy. Generous as it was, it was only intended to be a short-term measure.

What do I have to do to get in before the deadline? Eligibility is based on the date the contract is exchanged, so to get the full boost, the last date you can enter into the contract is September 30. If you are buying a new home, building must start within 26 weeks of the contract and be completed within 18 months. If you're an owner-builder, construction must start before the cut-off dates and be completed within 18 months. If you're buying off the plan, the contract must specify a completion date on or before December 31, 2010, for the $14,000 boost if the contract was made before June 30 this year.

Or March 31, 2011, if the contract was made between July 1 and September 30. Contracts made after October 1 must specify a completion date on or before June 30, 2011, or be completed by this time.

You'll need to meet the standard requirements for the first-home buyer grant, such as being over 18, not having previously owned or had an interest in an Australian residential property and at least one of the applicants living in the home for at least six months on a continuous basis within 12 months of the transaction being completed.

How do I apply? You can get a form from your state's revenue department. Check out the NSW Office of State Revenue at osr.nsw.gov.au or phone 1300 130 624; the Victorian State Revenue Office at http://www.sro.vic.gov.au or phone 132 161; or the ACT Revenue Office at revenue.act.gov.au or phone (02) 6207 0028. Each state also has its own concessions for first-home buyers.

Will property be cheaper after this? It's hard to say but the first-home buyer end of the market has gone gangbusters, despite pressure on prices in other segments of the market.

Source: Fairfax