Hello friends,
A friend of mine in Sydney purchased a property about 18 months ago. Originally, he intended to live in it, but due to several factors, never moved into the place and has been living with family. Instead of using it as his residence, he rented it out and has used it as an investment property.
He took the benefit of the first home buyers grant ($7K).
Now the ATO are chasing him saying that as he has not used it as a residential property – he was not entitled to the grant.
It seems to me on my reading that there is a grey area. Any thoughts?
Not a grey area. The State Rev Dept will chase him for the money (plus penalties possibly). My understanding is the FHOG is contingent upon you living in the property within 12 months to qualify for the grant.
Not a grey area at all.
Wasn’t a home therefore he needs to pay it back.
The good news is that he can use it again if he does buy a home.
Check your state’s legislation at:
http://www.mortgagehunter.com.au/first-home-owner-grant.html
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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