First home buyer grants in Australia exist to help people get into the property market sooner, and the support available is more substantial than many eligible buyers realise.
Between outright grants, stamp duty concessions, and federal government guarantee schemes, the total assistance available to eligible first buyers can run to tens of thousands of dollars.
The problem is that entitlements vary by state, change periodically, and come with eligibility conditions that trip people up.
Understanding what is available, what you qualify for, and what the conditions are before you start your property search is the best way to make sure you capture every dollar you are entitled to.
The Australian Government’s First Home Owner Grant information provides a starting point, with each state revenue office holding the current and definitive details for their jurisdiction.
The First Home Owner Grant
The First Home Owner Grant is a one-off payment funded by state and territory governments for eligible first home buyers. The grant was originally introduced in 2000 to offset the GST impact on housing and has evolved significantly since then.
The amount and eligibility conditions vary by state, but the common thread is that the grant is generally only available for new homes, including newly constructed houses, townhouses, apartments, and substantially renovated properties. Most states no longer offer the grant for established existing homes.
Current grant amounts include $10,000 in New South Wales for new homes valued up to $600,000.
In Victoria, the grant is $10,000 for new homes valued up to $750,000 in metropolitan areas, and $20,000 for new homes in regional Victoria.
In Queensland, the grant is $30,000 for new homes valued up to $750,000, while Western Australia offers $10,000 for new homes valued up to $750,000.
These figures and thresholds change periodically. Confirm current amounts with your state revenue office or conveyancer before making purchasing decisions based on grant eligibility.
Stamp Duty Concessions and Exemptions
For most first home buyers, the stamp duty concession or exemption is worth significantly more than the First Home Owner Grant itself. Stamp duty on a $600,000 home in some states would otherwise be $20,000 or more.
Most states exempt eligible first home buyers from stamp duty entirely on purchases below a certain threshold, with a sliding concession applying above that threshold up to a higher limit. Above the upper limit, full stamp duty applies.
In New South Wales, first home buyers pay no stamp duty on properties up to $650,000 and a reduced rate between $650,000 and $800,000. In Victoria, the exemption applies up to $600,000 with a concession to $750,000. In Queensland, the threshold for the concession on new homes is $550,000. Western Australia exempts first buyers on homes up to $430,000 with a concession to $530,000.
Unlike the First Home Owner Grant, stamp duty concessions in most states apply to both new and existing homes, making them accessible to a broader range of first buyers.
The First Home Guarantee Scheme
The federal government’s First Home Guarantee, previously called the First Home Loan Deposit Scheme, allows eligible first home buyers to purchase a home with as little as a five percent deposit without paying lenders mortgage insurance.
Lenders mortgage insurance protects the lender, not you, if you default on a loan with less than 20 percent deposit. It can add $10,000 to $30,000 or more to the cost of purchasing with a small deposit. The First Home Guarantee eliminates this cost by having the federal government guarantee the portion of the loan between five and 20 percent.
Places in the scheme are limited each financial year and are allocated on a first-come, first-served basis through participating lenders. Property price caps apply and vary by location. In Sydney, the cap is currently $900,000. In Melbourne it is $800,000. In other capital cities and regional areas it is lower.
The National Housing Finance and Investment Corporation administers the scheme and publishes current eligibility criteria, price caps, and participating lenders.
The First Home Super Saver Scheme
The First Home Super Saver Scheme allows eligible Australians to make voluntary contributions into their superannuation and later withdraw those contributions, along with associated earnings, to use as a home deposit.
The scheme takes advantage of the concessional tax treatment of superannuation. Voluntary contributions are taxed at 15 percent within super rather than your marginal tax rate, which for most working Australians produces a meaningful tax saving.
Contributions of up to $15,000 per financial year can be made under the scheme, with a total withdrawal limit of $50,000 per person.
Combined with a partner’s contributions, a couple can potentially access up to $100,000 for a deposit through this scheme, with a tax advantage over saving the same amount outside superannuation.
Key Eligibility Conditions to Check
Across all these schemes, several eligibility conditions are consistent. You must be purchasing your first home, meaning you have never previously owned residential property in Australia.
You must be an Australian citizen or permanent resident. You must intend to occupy the property as your principal place of residence, typically for at least six to twelve months.
Most schemes exclude investment property purchases and properties above specified price thresholds. Each scheme has its own application process and timing requirements, and some require applications to be submitted before settlement.
Conclusion
First home buyer grants in Australia can provide substantial financial assistance to eligible buyers, but capturing those entitlements requires understanding what is available, confirming your eligibility, and applying correctly and on time.
Your conveyancer will manage most of the application process but knowing what you are entitled to before you start means you can factor it into your budget from day one.
Visit seen.com.au for property listings, suburb guides, and more resources written for first home buyers across Australia.
FAQs
1. Can I use the First Home Owner Grant as part of my deposit in Australia?
In some states, the grant can be applied directly at settlement and effectively forms part of your funds. However, lenders generally require your deposit to be in place at the time of loan approval, before the grant is received. Check with your lender and state revenue office on how the grant timing integrates with your specific loan structure.
2. What happens if I buy as a first home buyer and then rent the property out?
Most grants and concessions require you to live in the property as your principal place of residence for a minimum period, typically six to twelve months from settlement. Renting the property out during this period can result in repayment of the grant and concessions received. Check the specific conditions in your state before making any arrangements to rent.
3. Can couples both access first home buyer entitlements in Australia?
If both people in a couple have never owned property before, you may both qualify as first home buyers. However, most grants are paid once per transaction rather than per person. If one person in a couple has previously owned property, it may affect the other person’s eligibility depending on the state’s rules.
4. Do first home buyer entitlements apply to apartments?
Yes, in most cases. Newly constructed apartments and off the plan purchases typically qualify for the First Home Owner Grant where new properties are eligible. Established apartments qualify for stamp duty concessions in states where existing properties are included. Check the specific conditions in your state.
5. Is there a time limit on applying for first home buyer grants in Australia?
Yes. Applications must generally be submitted within a specified timeframe from settlement or construction completion. Missing this deadline can result in forfeiting the grant. Your conveyancer will typically manage this as part of the settlement process but confirming the deadline early is worthwhile.