All Topics / Finance / FHOG and partners, when does their history become yours?

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  • Profile photo of jazz77jazz77
    Member
    @jazz77
    Join Date: 2009
    Post Count: 78

    Heres the situation,

    Owner builder begins constructing new home in 2009, eligible for FHOG on his own, payable after completion.

    During construction gets a partner who has already claimed her FHOG about 12 months earlier.

    Home is completed in may 2011.

    The couple marry in June 2011.

    The guy now applies for his FHOG as construction is complete, he has 12 months to apply from the completion date.

    Is he still eligible?

    How should he fill out the application form where it says "Do you have a spouse or partner?" Seeing he was single when construction began, defacto when home comleted and married when the actual application is submitted.

    I think i have included all the details, let me know if theres any info missing.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    You will have to look up the FHO act in the state of the property and work through it to find out. Also look at the definition of 'spouse'.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of jazz77jazz77
    Member
    @jazz77
    Join Date: 2009
    Post Count: 78

    Thanks Terry,

    I spoke to the SRO today. I was told it would be best to fill out the form as having no partner. As this was the case when construction began.

    They also informed me it was a grey area as to if the grant would still be payable.

    Profile photo of wisepearlwisepearl
    Member
    @wisepearl
    Join Date: 2009
    Post Count: 264

    Hi Jazz

    Requirements and definitions do vary a little from state to state I think, but all are clear that you can only apply once construction has completed, ie from May 2011. So I don’t think its relevant that he had no spouse when construction began… Its relevant he had a partner at time of construction completion, and some states define spouse as de facto from 12 months, others 24 months, all include spouse once married ie June 2011.

    If he was to sign the application form today, I am fairly sure he would legally have to declare that he now has a spouse – you have to sign you have provided correct information, or they can reclaim the grant off you down the track…

    However if there was some legitimate way to backdate the documents to pre-wedding and submit post-construction and pre-wedding, maybe its possible?

    I wouldn’t rely on a verbal indication from one phone call – not if its anything like other government departments. Ring on 3 separate occasions, and each time note the name of the person you spoke to, date and time of call.

    I avoided this situation personally by getting my husband to purchase our PPOR in his name prior to our wedding and claim the FHOG for himself, we had a nine month window between him getting permanent residency and being eligible and us reaching the de facto time limit.

    Profile photo of ToMatOzChito
    Participant
    @tomatoz
    Join Date: 2011
    Post Count: 3

    Hi Wisepearl,

    May I ask how long have you guys waited before getting married after your husband has claimed the FHOG for himself?

    I'm in a similar situation as you were. I am still single and going to apply for FHOG this month. But I have a gf (not de facto relationship) who has already claimed FHOG and we are thinking to get married in the beginning of next year. I wonder if I am still eligible to apply for the grant?

    Profile photo of wisepearlwisepearl
    Member
    @wisepearl
    Join Date: 2009
    Post Count: 264

    Hi Tomatoz,

    As far as I am aware, the important thing about the relationship status is that you are classed as single at the time of makingthe FHOG claim and at settlement of the property. If you get married months afterwards it should not affect your entitlement to claim…

    My hubby got permanent residency in March 2010, so got everything ready with the broker then, found a place in april/may and it settled in June 2010. In December 2010 we would have officially been classed as de facto, although it could be hard for the government to prove that as we had no leases signed in joint names. We were married in March 2011.

    Double check the requirements for your state, surely the requirements are only applicable for when you apply for FHOG. and just ensure that you’re not defacto in their definition, some states could be 12 months and other 24 months in a cohabiting relationship.

    Good luck, and congratulations on your upcoming wedding! :)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You should look at the legislation. FHOG act in your state.

    I would have thought it would be classed as living in a domestic relationship – which is different to spouse. I haven't looked at it however.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I was curious so looked it up for NSW

    Spouse is defined at s 6

    FIRST HOME OWNER GRANT ACT 2000

    http://www.austlii.edu.au/au/legis/nsw/consol_act/fhoga2000250/s6.html

    basiclally if includes some you are legally married to or de facto to.

    for the meaning of defacto it sends you over to the Acts Interpretation Act, s 21
    http://www.austlii.edu.au/au/legis/nsw/consol_act/ia1987191/s21c.html

    (2) Meaning of “de facto relationship” For the purposes of any Act or instrument, a person is in a "de facto relationship" with another person if:

    (a) they have a relationship as a couple living together, and

    (b) they are not married to one another or related by family.

    (3) Determination of “relationship as a couple” In determining whether 2 persons have a relationship as a couple for the purposes of subsection (2), all the circumstances of the relationship are to be taken into account, including any of the following matters that are relevant in a particular case:

    (a) the duration of the relationship,

    (b) the nature and extent of their common residence,

    (c) whether a sexual relationship exists,

    (d) the degree of financial dependence or interdependence, and any arrangements for financial support, between them,

    (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.

    No particular finding in relation to any of those matters is necessary in determining whether 2 persons have a relationship as a couple.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Subsection 3 came out strage, here it is with better formatting

    (3) Determination of “relationship as a couple” In determining whether 2 persons have a relationship as a couple for the purposes of subsection (2), all the circumstances of the relationship are to be taken into account, including any of the following matters that are relevant in a particular case:

    (a) the duration of the relationship,

    (b) the nature and extent of their common residence,

    (c) whether a sexual relationship exists,

    (d) the degree of financial dependence or interdependence, and any arrangements for financial support, between them,

    (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.

    No particular finding in relation to any of those matters is necessary in determining whether 2 persons have a relationship as a couple.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Bloody hell, the formatting changes when posted
    have a look at http://www.austlii.edu.au/au/legis/nsw/consol_act/ia1987191/s21c.html

    Note, it doesn't say anything specific about time. Just that the duration of the relationship can be taken into account

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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