Hi,
I’m in the process of buying a place. My boyfriend has received the FHOG before when he purchased a house with someone else but I have never received it before or owned any property before. I find the test a little bit difficult as there are only guidelines as to what constitutes a partner for the purposes of the exclusions from receiving the grant. We live together but are largely financially independent in that we don’t have a joint account for living expenses or anything like that. We also don’t have any children etc. The propert ywould be in my name alone.
Can anyone tell me if I would be likely to be entitled to it in the circumstances?
Thanks in advance.
The definition seems clear enough:
A person is the spouse of another person if they are legally married, or they are living together as a couple in a de facto relationship within the meaning of the Property (Relationships) Act 1984. If the Chief Commissioner is satisfied that, at the time of deciding an application for a first home owner grant, an applicant is legally married but not cohabiting with the person to whom the applicant is legally married, and has no intention of resuming cohabitation, the person to whom the applicant is legally married is not to be regarded as the applicant's spouse. Note: There is no minimum period of cohabitation which defines a de facto marriage under the Property (Relationships) Act 1984.
De facto relationships
(1) For the purposes of this Act, a de facto relationship is a relationship between two adult persons:
(a) who live together as a couple, and
(b) who are not married to one another or related by family.
(2) In determining whether two persons are in a de facto relationship, all the circumstances of the relationship are to be taken into account, including such of the following matters as may be relevant in a particular case:
(a) the duration of the relationship,
(b) the nature and extent of common residence,
(c) whether or not a sexual relationship exists,
(d) the degree of financial dependence or interdependence, and any arrangements for financial support, between the parties,
(e) the ownership, use and acquisition of property,
(f) the degree of mutual commitment to a shared life,
(g) the care and support of children,
(h) the performance of household duties,
(i) the reputation and public aspects of the relationship.
(3) No finding in respect of any of the matters mentioned in subsection (2) (a)-(i), or in respect of any combination of them, is to be regarded as necessary for the existence of a de facto relationship, and a court determining whether such a relationship exists is entitled to have regard to such matters, and to attach such weight to any matter, as may seem appropriate to the court in the circumstances of the case
If you are in any doubt about your situation pay a lawyer who practises in family law to give you advice.
Yeah fair enough. I just had a bit of a look around the forums and it seemed there might be more to it, or at least a practical approach to it. For example, if only some of the criteria apply.
Thanks for your help anyway.
crj definition is quiet correct however i think you wil find the practical issues of making application for the FHOG are different.
Richard Taylor | Australia's leading private lender
who would no if you are boy and girl freind
keiko wrote:who would no if you are boy and girl freindWho really knows what your income is when you enter into a low doc/no doc loan? Does the ATO really know what your income is when you are self employed? But declaring something that isn't true on a legal document is committing fraud and if you get caught, you will pay the price.
When considering whether you are boyfriend/girlfriend, imagine someone asking one of your friends or your family members what they think. If friends/Family consider you to be in a relationship, you are in a relationship for FHOG purposes.
Cheers
K
Hi, Anon
Just my personal thought on this. In practice, if you apply for a property and the subsequent loan in only your own name, it should not be a problem to get the FHOG. Even if you need a guarantor to increase your loan amount, I think you can still use your boyfriend. After all, he only has to be a guarantor.
I applied for my Aust residency with my partner 2.6 yrs back and the amount of paperwork needed to prove that you are in a relationship is quite substantial, as we were not married at that time. So, that means to prove that you are not in a relationship is very easy indeed, for the purpose of buying a property and obtaining a loan.
So, in this aspect, I agree with Richard in that the actual application process for the FHOG is quite different in practice.
Regards
Daniel LeeLinar wrote:keiko wrote:who would no if you are boy and girl freindWho really knows what your income is when you enter into a low doc/no doc loan? Does the ATO really know what your income is when you are self employed? But declaring something that isn't true on a legal document is committing fraud and if you get caught, you will pay the price.
When considering whether you are boyfriend/girlfriend, imagine someone asking one of your friends or your family members what they think. If friends/Family consider you to be in a relationship, you are in a relationship for FHOG purposes.
a low and no doc is abit different i would of thought, but back to the boyfreind/girlfreind miles well break up for several weeks to get the $14k grant then that would have to be legal
Thanks for all the responses guys. Gives me something to think about anyway.
Didn't follow your last one though keiko re breaking up?
My point was, when all you have to do is declare something on a document (your relationship status, your income level etc) you can really write down whatever you want. However, if you write something that isn't true then it is fraudulent.
Sorry Daniellee, I have to disagree with you. If anon writes on the FHOG form that she is not in a defacto relationship then she is committing fraud. The financial independence is only one small aspect of the test. The general test is "what would outsiders think of the relationship?" If anon writes on the form that she is not in a relationship and she gets investigated then she will no doubt be forced to repay the money and will possibly face criminal charges.
Anon, there is a lot of reading between the lines on this thread. My advice would be to get legal advice on this issue. Failing that, be aware of the consequences of giving false information when applying for the FHOG. People have, and will continue to be, prosecuted for doing this.
Cheers
K
Anon, hi what i was meaning, if you broke up for several weeks and you were not boyfreind/girlfreind then i dont see any reason why you can not claim your $14k as you will be single and you have never claimed before.
linar does have a point too.
but i would ask your lawyer or accountant and see what they thinkKeiko
To do this, anon would have to be able to prove that they were split up at the time. Her boyfriend would have to change his mailing address. If some bills are paid in his name, he would have to cancel that account and set up an account at his new address. Credit card details would have to be changed. If the lease is in both their names then that would need to be changed. And ultimately, if anon were investigated, her friends and family would be need to be able to sign a stat dec to the effect that they honestly believed that at the time anon signed the FHOG application, she was not in a relationship with her partner.
It seems like a lot of hard work and potentially fraught with danger.
Cheers
K
Hi, Anon (and Linar)
My view came about because of this:
Back in May 2007 when my partner and I were looking for our first PPOR, we visited her ex-boss where partner worked casually while as a Uni student. Her ex-boss told us that we could each go off and purchase a PPOR and each claim the FHOG, as his friends and their partners were also doing so.
We asked would that not be fraudalent for each of us to claim the FHOG, and he said not if the property title deed, loan agreement and all mails goes to the individual properties, so effectively living separate lives. So, as long as both parties are not living together in the same property, then it was not a problem. A couple of his friends and their partners maintained this arrangement for 12 months before moving in together and then renting out one of the PPOR as an IP.
Clearly, it worked our for ex-boss' friends and their partners, but it depends on your arrangement. If your partner is living with you and intends to do so in your new place, then might be best to forgo the FHOG. After all, nothing beats saving for 3-6 months to cover that amount while waiting for the market to cool down even more. The FHOG might be extended as well.
As for partner (now wife) and I, we decided to just claim one FHOG as we were going to living together anyhow, and purchased our first PPOR in Aug 2007.
Regards
Daniel LeeHey Daniel
If partners are not living together prior to applying for the FHOG then both partners would each be entitled to it. Your partner's ex boss was correct in that he said that each partner had to effectively be living separate lives.
The difference with anon is that she is already living with her partner, as you were with yours.
Congratus on your house purchase and good luck with several more!
Cheers
K
Thanks guys for all your guidance. I was just wondering if anyone else has had experience with this issue directly?
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