Government Grants and Schemes for First Home Buyers

Quick Look

Focus: Overview of national and state-based support schemes for first home buyers in Australia

Key Takeaways :

The government offers grants, concessions, and guarantees to help eligible buyers enter the market
Each scheme has different eligibility rules based on income, property value, and location
Applying early and understanding deadlines can make a big difference
Reading Time: ≈ 6minutes

Introduction

Buying your first home is a major milestone—but with prices climbing, deposits growing, and borrowing rules tightening, it can feel out of reach.

Thankfully, both the federal and state governments offer support for eligible first home buyers. Grants, stamp duty concessions, and deposit guarantees can take thousands off your up front costs — if you know where to look and how to apply.

Context & Problem

A 20% deposit on a median-priced home in Australia now sits well above $100,000 in many areas. For first-time buyers, that kind of saving can take years — especially while also paying rent.

That’s why government schemes exist: to level the playing field a little. But many buyers miss out by assuming they’re ineligible or leaving it too late to apply.

There’s no one-size-fits-all approach — eligibility varies depending on your income, the value of the property, and where you’re buying. Understanding the options early can save you time, stress, and money.

Strategy & How To

Here’s a breakdown of the major national and state-based schemes available for first home buyers in 2025:

1. First Home Guarantee (FHBG Federal Govt)

What it is: Lets you buy a home with as little as 5% deposit, with the government acting as guarantor so you can avoid Lenders Mortgage Insurance (LMI)

Eligibility:

First home buyer
Individual income under $125,000 (or $200,000 for couples)
Owner-occupier only
Property price caps: Vary by region—e.g. $750,000 in Sydney, $600,000 in Adelaide (NHFIC caps 2025)

Tip: Limited places—apply early via participating lenders

2. First Home – Owner Grant (FHOG State Govts)

What it is: A one-off cash grant (usually $10,000) for eligible buyers of new homes or homes off the plan

Available in: All states and territories, with slightly different rules

Example:

NSW, VIC, WA, TAS: $10,000for new homes valued up to $750,000
QLD, SA: $15,000 for new homes valued up to $750,000

Tip: Applies only to new properties in most states

3. Stamp Duty Concessions or Exemptions (State Govts)

What it is: A full or partial reduction in stamp duty(transfer duty)

Eligibility:

Must be a first home
Property value must be under a certain threshold

Examples:

NSW: No stamp duty on homes up to $800,000, sliding scale up to $1 million (2024)
VIC: No stamp duty on homes under $600,000, concession up to $750,000(2024)

4. Regional First Home Buyer Guarantee

What it is: Similar to the FHBG but targeted at regional areas
Supports: Local economies and helps first home buyers avoid LMI with 5% deposits
Eligibility: Same as FHBG, but must buy in a regional postcode

5. First Home Super Saver Scheme (FHSSS)

What it is: Lets you save part of your deposit inside super for tax advantages
Withdraw up to $50,000 of voluntary contributions, plus earnings
See our separate article for a full breakdown

State-by-State Extras(2025 snapshot)

STATE/TERRITORY	EXTRA PERKS FOR FIRST HOME BUYERS
NSW	Choice of stamp duty or annual property tax (under $1.5M)
VIC	$10,000 FHOG + stamp duty exemptions for eligible homes
QLD	$30,000 FHOG (until June 2025)
WA	$10,000 FHOG + first home buyer rate of duty
SA	No stamp duty on new homes up to $650k (from 2024)
TAS	50% discount on duty for homes under $600,000
ACT	No duty on eligible homes up to $750k (income tested)
NT	FHOG of $10,000 + Home Buyer Initiative options

Note: Schemes can change yearly—always check current rules via state revenue offices or the NHFIC website.

Case Study

Sam and Chloe, buying in Brisbane Combined income: $170,000 Property: New build valued at $620,000 What they accessed: $30,000 QLD First Home-Owner Grant Full FHBG place—bought with just 5% deposit ($31,000) avoided ~$15,000 in LMI No stamp duty (property under QLD threshold for first home buyers) Saved over $45,000 in up front costs and bought immediately which is 4 years sooner than expected using just $3,000 of their own cash ($1,000 deposit short fall + $2,000 purchase costs)

Common Questions & Misconceptions

Can I use more than one scheme?

Yes. Many buyers use a combination—e.g. FHBG + stamp duty exemption + FHSSS. Just be sure you meet the criteria for each.

Does my partner’s property history count?

Yes. For most schemes, both buyers must be first home buyers. If your partner has owned property, you may not qualify.

What if I’m building rather than buying?

That’s fine—many grants apply to new builds or off-the-plan purchases. Just check the rules on time frames and builder eligibility.

Is there a deadline to apply?

Yes. Schemes like FHBG have limited spots and annual caps. Others, like stamp duty concessions, have strict timing tied to settlement. Don’t leave it too late.

Do I need to live in the home?

Yes. Most grants require you to live in the property for6–12months.

Conclusion

If you’re a first home buyer, government support could make a huge difference to your buying power and timing. But with each scheme having its own rules, it’s important to research early, crunch your numbers, and understand your eligibility.

Used wisely, these programs can help you enter the market with a smaller deposit, lower up front costs, and less stress.

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Disclosure: General information only. Consider your objectives, financial situation and needs, and seek professional advice before acting.

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Every article includes aReview & Fact Checksection below—so you know exactly where our facts come from, what’s uncertain, and whether there’s any bias.

Review & Fact Check

Bias Assessment

Article is educational and neutral Promotions for moneyGPS and Planning IQ clearly marked and separated from factual content

Fact References

First Home Guarantee, Regional Guarantee–NHFIC (nhfic.gov.au), updated 2025 caps State-based FHOG and stamp duty rules–Revenue NSW, State Revenue Office VIC,QLD Treasury, and other state sites as of May 2025 FHSSS contribution and withdrawal limits–ATO (ato.gov.au), current as of 1 July 2024

Unverified or Inconclusive Items

Sam and Chloe’s scenario is illustrative only Property price cap changes or scheme eligibility updates may not be reflected in real time

Time Sensitivity

Grants and caps are subject to budget changes and annual updates—check official sources before relying on amounts