FHOG PPOR Requirement Exemptions

The only situation I can think of that would fall into this category of a "short notice situation" without knowing it was going to happen (as most people can usually see what is going on up ahead or can just refuse it) is someone in the military. If you friend is in the ADF and has had a short notice deployment or posting and has been required to move because of "service reasons" there are new provisions that came out this financial year (09-10) which make them exempt from having to live in it for 6 months.

here is information on the NSW  Government rules:

http://www.osr.nsw.gov.au/benefits/first_home/

not sure where the ruling for the federal government is but it is out there somewhere. (We all know how tight the NSW Government are, and they wouldn't pass this ruling unless the Federal Gvoernment already had :p )

If your friend is not in this category, (knowing that they have 12 months in which to occupy the property for a period of 6 continuous months or more) then unless he/she plans to move back into it within 12 months of purchasing the property, your friend should consider declaring that they have moved out and consider repaying the grant. If they got stamp duty exemption they may wish to remember that they will have to pay this back too (I know mine in Sydney last year was just over 15k for a property just over 400k).

Its their choice if they want run the gauntlet, so if they are not in the ADF or cannot move back into it in the near future (within 12 months of settlement). Then they are not eligible and I don't recall seeing any other provisions for it.