First home buyer guide: government grants and concessions

Learn about the government grants and concessions available for first home buyers and save money on your first home.

If you are a first home buyer, it’s a great idea to learn more about the government support schemes that are available in Australia that can help you reduce your home buying costs.

In this guide, we will provide an overview of what they are, how they can help you and the different eligibility criteria.

What government support programs are available to first home buyers?

Here are the government home buying programs currently available.

• First Home Owner Grant (FHOG)
• First Home Super Saver (FHSS) Scheme
• Home Guarantee Scheme
• Stamp duty grants and concessions.

Eligibility criteria for each of these programs varies between states and territories.

First Home Owner Grant (FHOG)

The First Home Owner Grant, also known as the First Home Buyer Grant, is a one-off government payment funded by each of the states and territories.

See how much you could be eligible to claim.

• New South Wales: up to $10,000
• Victoria: up to $10,000
• Queensland: up to $30,000 – this first home buyers grant in QLD doubled from the previous $15,000 on 20 November 2023
• Tasmania: up to $30,000
• Western Australia: up to $10,000
• South Australia: up to $15,000
• Northern Territory: up to $10,000

Who is eligible for the First Home Owner Grant?

As with many of the government support programs available to first home buyers, the eligibility criteria will vary between states and territories.

However, the common criteria for this grant include:

• You must be a first home buyer and not have previously owned any property
• You must be 18 years or older
• At least one applicant must be an Australian citizen or permanent resident
• You must be an owner occupier and intend to live in your home for a specified period
• Your home must be valued within a certain range
• The property must be used as a principal place of residence (PPR) and can be a house, apartment, unit or townhouse.
• The property can be newly built, purchased off the plan or a substantially renovated home. Established homes are not included in this grant.

First Home Super Saver (FHSS) Scheme

The FHSS Scheme was introduced by the Australian Government in July 2017 to alleviate pressure on housing affordability.

This scheme allows first home buyers to make voluntary contributions into their super fund to save for their first home. They will then be able to release these contributions when they’re ready to buy a property.

First home buyers can withdraw (taking into account the yearly and total limits):

• 100% of their non-concessional (post-tax) amounts
• 85% of their concessional (pre-tax) amounts.

It’s important to note that you can only request one release from the FHSS scheme and must do this within 14 days of signing your property contract.

It will typically take between 15 and 25 business days to receive the funds.

You must be 18 years of age or older to release funds, but you can begin contributing funds before you are 18 years of age.

To be eligible, applicants need to:

• Intend to be the owner-occupier of the property
• Intend to occupy the property for at least 6 months within the first 12 months of owning the property
• Be a first home buyer in Australia.

Home Guarantee Scheme

The Home Guarantee Scheme is made up of three guarantees:

• First Home Guarantee
• Family Home Guarantee
• Regional Home Guarantee.

Keep reading to find out more information about these three guarantees and the eligibility criteria for each.

The First Home Guarantee is a federal government initiative.

From 1 July 2023 – 30 June 2024, 35,000 places are available.

It was created to help first home buyers purchase their first property sooner by waiving Lenders Mortgage Insurance (LMI).

Did you know: Home buyers are typically charged LMI when their deposit is less than 20% of the value of their home.

This scheme allows eligible first home buyers to purchase a home with a deposit of as little as 5%, with the government guaranteeing the remaining 15%.

Who is eligible for the First Home Guarantee?

To be eligible for this guarantee, applicants will need to:

• Apply as an individual or 2 joint applicants
• Be 18 years of age or older
• Be an Australian citizen or permanent resident at the time of entering the loan
• Earn up to $125,000 for individuals and $200,000 for couples
• Intend to be owner occupiers of the property
• Purchase an eligible property. This includes an existing house, townhouse or apartment, a house and land package, land and a separate contract to build a home or an off-the-plan apartment or townhouse
• Be first home buyers or previous homeowners who haven’t owned a property in Australia in the past 10 years.

Eligibility criteria in different states or territories may slightly vary. Property price caps for this guarantee are below:

2. Family Home Guarantee

The Family Home Guarantee, also known as the single parent home loan scheme, was introduced in the 2021 Federal Budget. From 1 July 2023 – 30 June 2024, 5,000 places are available.

This guarantee helps eligible single legal guardians and single parents get a home loan with a deposit of as little as 2%, without having to pay LMI. The government guarantees up to 18% of the home’s purchase price to make up the rest of the deposit.

Although non-first home buyers are eligible to participate in this scheme, first home buyers can also benefit as long as they meet the criteria.

To be eligible, you must:

• Be a single parent or single legal guardian of at least 1 dependent
• Be an Australian citizen or permanent resident
• Have an annual taxable income of up to $125,000.

Eligible properties and property price caps for the Family Home Guarantee are the same as those for the First Home Guarantee.

3. Regional Home Guarantee

The Regional Home Guarantee is the final Home Guarantee Scheme. From 1 July 2023 – 30 June 2024, 10,000 places are available.

It allows eligible participants to build a new home or buy a newly constructed home in a regional area with a deposit of as little as 5%. The government then guarantees up to 15% of the remaining deposit.

While the Regional Home Guarantee is open to those who haven’t owned a home in the last 5 years, first home buyers are also eligible. 10,000 places will be open to eligible Australian citizens and permanent residents.

To be eligible for this guarantee, applicants must:

• Be an Australian citizen or permanent resident
• Not have owned a property in the past 10 years
• Be owner occupiers of the property (not purchase the property as an investment).

See property price caps below:

Stamp duty concessions and exemptions

Stamp duty, also known as transfer duty, is a state and territory government tax charged when the legal ownership of an asset, such as a car or property, is transferred from one person to another.

Each time you purchase a property, you will need to pay an upfront stamp duty free.

Stamp duty fees are calculated on a sliding scale. So, the amount you’ll be charged will depend on the type of property you buy, where it’s located and the value of the property.

As a general rule of thumb, stamp duty will typically cost 3-4% of the price of the property.

Each state and territory has its own eligibility requirements for stamp duty concessions and exemptions.

How much stamp duty might you need to pay?

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Who is eligible for the stamp duty concessions*?

• The purchase must be for a new or existing home, or vacant land in NSW
• The property value must be within the threshold amounts
• The transfer must be for the whole property
• You must be an individual, (not a company or trust*)
• You must be over 18*
• You and your spouse or partner, must never have owned or co-owned residential property in Australia
• You and your spouse or partner, must never have previously received an exemption or concession under the scheme
• At least one of the first home buyers must be an Australian citizen or permanent resident
• For new or existing homes, you must meet the requirements for living in the property.

Please note the above eligibility criteria is for NSW.

Can you be eligible for multiple first home buyer grants and concessions at once?

Yes, you can apply and qualify for multiple first home buyer schemes at the same time, given you meet each of their individual criteria.

Due to various factors like property price caps, you may not be eligible for all of these schemes.

Build & Protect Financial Services are experts in the field of home loans, including first home buyer grants and concessions.

Book a free appointment today to feel confident when buying your first home.

Could you save with a first home buyer concession?

Build & Protect Financial Services can let you know what schemes you’re eligible for.

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