There are many government grants available to first-home buyers in Australia, such as low deposit schemes, grants and equity sharing schemes, to name a few.
In fact, according to the National Housing Finance Investment Corporation (NHFIC), nearly one-third of first-home buyers took advantage of the government guarantee scheme last financial year.
Home Guarantee Scheme (HGS)
The Home Guarantee Scheme (HGS) is an Australia-wide government program that helps eligible homebuyers purchase a property with a deposit as low as 2-5%.
Housing Australia promises up to 15% of the value of a first home and up to 18% for single parents or carers which avoids the need for lender mortgage insurance (LMI) A few schemes are available to homebuyers through HGS, e.g
- First Home Guarantee (FHG)
Starts from 5% for eligible first-home buyers who purchase a home with a deposit with no LMI.
- Regional First Home Buyer Guarantee (RFHBG)
Eligible first-home buyers will purchase a home in a regional community with deposits starting at 5% with no LMI.
- Family Home Guarantee (FHG)
Eligible single parents or single legal guardians with at least one dependent purchase a home with deposits starting at 2% with no LMI.
List of lenders that participate in the Home Guarantee Scheme
First Home Super Saver (FHSS)
Under the scheme, the government has increased the maximum amount borrowers can withdraw from super from $30,000 to $50,000.
The First Home Super Saver (FHSS) program allows first-time homebuyers to withdraw up to $50,000 in voluntary contributions (including associated income) toward a mortgage. Contributions released under the FHSS scheme can be used to purchase a new or existing home in Australia.
From 1 July 2024, one can contribute up to $30,000 per year to their super at a 15% tax reduction, rather than paying the marginal income tax rate. Under the FHSS scheme, one can claim a maximum of $15,000 and up to $50,000 of their super contributions released in any one financial year.
Note
One will need a determination letter from the ATO (Australian Taxation Office) stating how much you can withdraw from your super to use as a deposit on the home loan.
Once the investment is withdrawn, it generally takes 12 months to sign a contract to sell or build a home or one may need to transfer the investment back into their super fund.
One can only apply for admission under the FHSS program once. Property purchases with super are also available for investors and some retirees.
Help to buy scheme (shared equity program/scheme)
The Help to Buy program is a new national shared equity scheme that allows eligible homebuyers (couples earning less than $90,000 a year and couples earning less than $120,000) to purchase a home with a 2% deposit.
The Help to Buy program is a shared scheme where the government helps first-home buyers to buy a home by offering up to 40% of the property value for a new home and up to 30% for an existing home existing on the existing.
A policy has been developed to help with the long-term affordability problem. 10,000 places will be offered to eligible Australians each year. The government has not yet confirmed that the scheme will begin in 2024.
First Homeowner Grants (FHOG)
The First Home Owner Grant is a grant for first homeowners to help with the cost of building their first home or vacant lot. It doesn’t have to be repaid and it is tax-free, but there are some conditions.
The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the impact of GST on home ownership.
FHOG eligibility criteria are the same for each state and territory, including
- Applicants must be 18+ years of age.
- Must be an Australian citizen or permanent resident (or co-applicant).
- Must be a first-time home buyer who has never owned a property or assisted.
There are also FHOG property requirements, including
- Must be buying or building in the state or territory to which the grants apply.
- Must move into your new property within one year of buying it and stay there for at least 6 or 12 months (depending on the country).
- The grant is not available to property investors, or property purchased by a trust or company.
First Home Buyer Grant in QLD
In Queensland, eligible first-home buyers can access up to $30,000 to buy or build a new home (until June 2025). The property must be worth less than $750,000. Eligible assets under the scheme include:
- A new house, unit, townhouse or duplex (including off-the-plan).
- A new granny flat was built on a relative’s land.
- A home moved from one site to another (including kit homes or modular homes).
- Substantially renovated homes.
Other Grants
$5,000 Regional home building boost grant following the purchase or construction of one new house, unit or townhouse in regional Queensland.
Are first-home buyers in QLD exempt from stamp duty?
Yes, first-home buyers in Queensland can qualify for a total stamp duty exemption on a new home valued at $700,000 and vacant land worth less than $350,000 followed by a depreciation reduction.
First Home Buyer Grant in NSW
In New South Wales, eligible first-home buyers can get up to $10,000 to buy a new home worth up to $600,000 or a new house and land worth up to $750,000. Properties eligible under the program include:
- A new house, townhouse, apartment or unit.
- Substantially renovated homes.
Other grants/initiatives
Under this shared equity scheme, the NSW Government can provide up to 40% of the purchase price of a new home or 30% of an existing property in return for matching funds. This allows eligible buyers to receive less than a 2% rent deposit, while still owning 60% of the majority interest in the property. This program is income-tested.
Are first-home buyers in NSW exempt from stamp duty?
Under the First Home Buyers Assistance Scheme (FHBAS), first-time buyers in New South Wales can qualify for stamp duty exemption on properties worth less than $800,000 or vacant land worth less than $350,000. The discount applies above those two amounts but the deductible for the property is $1 million and the lower vacancy is $450,000.
First Home Buyer Grant in VIC
In Victoria, eligible first-home buyers can receive up to $10,000 to buy or build a new home worth up to $750,000. Eligible assets under the scheme include
A new house, townhouse, apartment or unit.
Off-the-plan properties.
Substantially renovated homes.
Other grants/initiatives
The Victorian Homebuyer Fund (VHF)
Under this share scheme, eligible homebuyers can purchase a home with a 5% deposit, with the Victorian Government exchanging up to 25% of the purchase price for an equivalent amount in the property.
Are first-home buyers in VIC exempt from stamp duty?
Yes, eligible first-time buyers can claim stamp duty relief on properties worth less than $600,000. Deductions will then apply to assets valued at up to $750,000.
First Home Buyer Grant in WA
In Western Australia, eligible first-home buyers can receive up to $10,000 in grants to buy or build a new home worth up to $750,000 in the Perth metropolitan area. Eligible assets under the scheme include:
- A new house, unit, townhouse or duplex (including off-the-plan).
- Substantially renovated homes.
Other grants/initiative
Home buyers assistance
Eligible homebuyers can receive up to $2,000 in assistance to offset certain expenses incurred during the purchase of a home, including mortgage payments, the cost of transferring a house overseas, the cost of a home loan, the cost of mortgage insurance and so on.
Keystart
A shared property loan, KeyStart allows qualified homebuyers to purchase a property with a 2% down payment. The Housing Authority of Western Australia offers up to 30% of the purchase price in exchange for an equivalent amount in the property. KeyStart offers fixed shared ownership loans (your share of the property is fixed) and flexible shared ownership loans where you can refinance (borrow against the equity in your home) to buy more shares in the property.
Are first-home buyers in WA exempt from stamp duty?
Yes, eligible first-home buyers in WA can claim stamp duty exemption on property worth less than $450,000 (house and land) and vacant land worth less than $300,000.
First Home Buyer Grant in SA
In South Australia, eligible first-home buyers can access up to $15,000 to buy or build a new home — regardless of the value of the new property In June 2024, the SA government released property and the fixed price for FHOGs was eliminated. Eligible assets under the scheme include:
- A new house, unit, townhouse, duplex (including off-the-plan), vacant land
Other grants/initiative
Shared equity option
Qualified homebuyers can put 5% down on the property. The South Australian Government (and lender HomeStart) will contribute up to 25% of the purchase price (capped at $200,000) for a new home in exchange for an equivalent property Buyer will own a 75% majority interest in the property. Participants can repurchase the government’s share of the property over time through a voluntary payment, a refinance (borrow against the equity in your home), or the property is sold This provision is an income test.
Are first-home buyers in SA exempt from stamp duty?
Yes, eligible first-home buyers in SA can claim their stamp duty exemption on properties worth less than $650,000 and vacant land worth less than $400,000. The discount is then applied to properties worth up to $700,000 (or $450,000 for vacant land).
First Home Buyer Grant in ACT
There is no First home owner grant in the ACT. Instead, the Home buyer concession scheme was established which gives eligible first home buyers a stamp duty exemption on properties worth less than $1,000,000 based on household income and number of dependent children which is followed by a discount. For 2023-24, the funding is capped at $34,504. All properties in the ACT are eligible for this scheme.
First Home Buyer Grant in the NT
Eligible first-home buyers in the Northern Territory can receive up to $10,000 to buy or build a new home. The income and property values are not affected by FHOG. Eligible properties under the scheme include:
- A new house, unit, townhouse or duplex (including off-the-plan).
- A home moved from one site to another.
- Substantially renovated homes.
Other grants/initiatives
HomeBuild access
This program offers qualified buyers with a home income of less than $127,500 the opportunity to purchase a new home with a 2.5% deposit. The Northern Territory government provides loans up to 17.5% of the purchase price. Loan terms of up to 30 years are available. This program is revenue-tested.
Are first-home buyers in NT exempt from stamp duty?
The only stamp duty exemption in the Northern Territory is the House and land package exemption (HLPE) which applies to houses and land purchased before 30 June 2027 (subject to conditions).
First Home Buyer Grant in the TAS
In Tasmania, eligible first-home buyers can receive up to $30,000 to buy or build a new home. Eligible assets under the scheme include:
- A new house, unit, townhouse or duplex (including off-the-plan).
- Kit homes.
Other grants/initiatives
MyHome shared equity program
Under its shared equity program, eligible house buyers can buy a home with a 2% deposit. Homes Tasmania offers up to 40% of the purchase price of a new home (up to $200,000) or 30% of an existing property (up to $150,000) in exchange for an equivalent amount Homes Tasmania’s share should be paid within 30 years.
Are first-home buyers in TAS exempt from stamp duty?
There is no stamp duty exemption for first-home buyers in Tasmania, but eligible first-home buyers can claim a 50% concession on a property worth less than $600,000.
Conclusion
Buying a first home is a significant milestone, and Australian government grants offer valuable support to make it more achievable.
Understanding eligibility requirements, property value limitations, and the variations across states and territories empowers individuals to navigate these financial benefits with greater confidence.
By exploring all options and seeking professional advice, first-time homebuyers can determine the grant that best suits their specific circumstances.
Disclaimer: The information presented above is in the sense of illustration and discussion only. Any party seeking to rely on content or otherwise should conduct their own due diligence and inquiries to ensure that it is relevant to their personal and business needs and circumstances.