Buying your first home in Australia is more achievable than you think—thanks to generous government grants, stamp duty concessions, and low-deposit schemes available to first-timers. But navigating the maze of state-based schemes is confusing.
This complete guide breaks down exactly what you're eligible for in every state and territory, how to claim it, and insider tips to maximise your benefits.
Federal Government Schemes (Available Australia-Wide)
These schemes are funded by the federal government and apply nationwide:
1. First Home Guarantee (FHG)
What it is: A government-backed scheme that lets you buy a home with just a 5% deposit without paying Lenders Mortgage Insurance (LMI). The government guarantees up to 15% of the loan value, so lenders don't charge LMI.
Who's eligible:
- Australian citizens or permanent residents
- First home buyers (never owned property before)
- Individuals earning up to $125,000/year, or couples earning up to $200,000/year
- Must live in the property as your primary residence for at least 6 months
Property price caps (2025):
- Sydney: $950,000
- Melbourne, Brisbane: $850,000
- Adelaide, Perth: $650,000
- Canberra, Hobart, Darwin: $600,000
- Regional areas: $600,000-$700,000
How much you save: LMI typically costs $10,000-$30,000 on a 5% deposit home loan. The First Home Guarantee eliminates this cost entirely.
How to apply: Through participating lenders when you apply for a home loan. Your broker or lender lodges the application on your behalf.
2. First Home Super Saver Scheme (FHSSS)
What it is: Lets you save for a house deposit inside your superannuation fund (taxed at 15% instead of your marginal rate), then withdraw up to $50,000 (plus earnings) to use as a deposit.
How it works:
- Make voluntary super contributions (salary sacrifice or personal contributions)
- Maximum $15,000/year, up to $50,000 total
- When ready to buy, apply to the ATO to release funds
- Funds are taxed at your marginal rate minus 30% on withdrawal
Who's eligible:
- First home buyers
- Never previously requested an FHSSS withdrawal
How much you save: If you're on the 32.5% tax bracket, contributing via super (taxed at 15%) vs. saving cash (taxed at 32.5%) saves you 17.5% in tax—around $8,750 on a $50,000 deposit.
Tip: Start this scheme 2-3 years before you plan to buy to maximise contributions.
State & Territory Schemes
Each state and territory offers additional grants and concessions. Here's what's available:
New South Wales (NSW)
First Home Buyer Assistance Scheme:
- Stamp duty exemption on properties up to $650,000 (full exemption)
- Partial concession on properties $650,000-$800,000
- Must live in the property for 6+ continuous months within first year
Example savings: Buying a $650,000 home? You save ~$25,000 in stamp duty.
Regional First Home Buyer Grant:
- $10,000 grant for buying or building a new home in regional NSW
- Property price cap: $600,000
- Must be a first home buyer and live in the property for 6+ months
Property price caps: Up to $800,000 for stamp duty concession (higher in regional areas).
Victoria (VIC)
First Home Owner Grant (FHOG):
- $10,000 grant for buying or building a new home
- Property value up to $750,000
- Must move in within 12 months and live there for 12+ months
Stamp Duty Concession:
- Full exemption on properties up to $600,000
- Partial concession on properties $600,000-$750,000
Example savings: Buying a $600,000 new home? You get $10,000 grant + ~$30,000 stamp duty exemption = $40,000 total.
Queensland (QLD)
First Home Owner Grant:
- $30,000 grant for buying or building a new home
- Property value up to $750,000 (regional areas: up to $650,000 for resale homes)
- Must occupy the property for 6+ continuous months within first year
Stamp Duty Concession:
- Full exemption on properties up to $500,000 (first home buyers only)
- Partial concession on properties $500,000-$550,000
Example savings: Buying a $500,000 new home in QLD? You get $30,000 grant + ~$18,000 stamp duty exemption = $48,000 total (the most generous in Australia).
South Australia (SA)
First Home Owner Grant:
- $15,000 grant for buying or building a new home
- Property value up to $650,000
- Must occupy within 12 months and live there for 12+ months
Stamp Duty Concession:
- Varies based on property value—typically $10,000-$20,000 savings for first home buyers on properties under $600,000
Western Australia (WA)
First Home Owner Grant:
- $10,000 grant for buying or building a new home
- No property price cap
- Must occupy within 12 months and live there for 6+ months
Transfer Duty Concession:
- Full exemption on properties up to $430,000
- Partial concession on properties $430,000-$530,000
Off-the-Plan Concession:
- Additional transfer duty concession for buying off-the-plan properties (up to $25,000 savings)
Tasmania (TAS)
First Home Owner Grant:
- $30,000 grant for building a new home (not buying existing)
- No property price cap
- Must occupy within 12 months and live there for 6+ months
Stamp Duty Concession:
- 50% concession for first home buyers (on properties up to $600,000)
- Can save $10,000-$15,000
Australian Capital Territory (ACT)
Home Buyer Concession Scheme:
- Full stamp duty exemption on properties up to $500,000
- Partial concession on properties $500,000-$750,000
No FHOG in ACT (stamp duty exemption is the main benefit)
Northern Territory (NT)
First Home Owner Grant:
- $10,000 grant for buying or building a new home
- Property value up to $650,000
- Must occupy within 12 months and live there for 6+ months
BuildBonus Grant (if still active in 2025):
- Additional $10,000-$20,000 for building new homes (check current status with NT government)
How to Claim Your Grants
Claiming first home buyer grants is straightforward:
- Check eligibility: Use the relevant state revenue office website to confirm you meet criteria.
- Apply for home loan: Your broker or lender can help you apply for federal schemes (First Home Guarantee, FHSSS).
- Lodge grant application: Most state grants are lodged by your solicitor/conveyancer during settlement. You'll need to provide:
- Proof of identity (license, passport)
- Contract of sale
- Proof you're a first home buyer (statutory declaration)
- Proof of residency (utility bills, etc. after moving in)
- Receive funds: Grants are typically paid at settlement (deducted from your purchase price) or within 30 days of settlement.
Common Mistakes to Avoid
1. Buying an Established Home When You Need a New Home
Many state grants (NSW regional grant, QLD $30K grant, TAS $30K grant) only apply to new homes—not established properties. Double-check before signing a contract.
What's a "new home"?
- Never been lived in before
- Built within the last 12 months
- Purchased from a builder or developer
2. Exceeding Property Price Caps
If you buy a $660,000 home in NSW, you miss out on the full stamp duty exemption (cap is $650,000). Even $10,000 over the cap can cost you $25,000+ in lost concessions.
Tip: Negotiate purchase prices to sit just under the cap where possible.
3. Not Living in the Property
All grants require you to occupy the property as your primary residence for a minimum period (usually 6-12 months). If you rent it out or sell too soon, you must repay the grant + penalties.
4. Applying After Settlement
Most state grants must be applied for before or during settlement. Applying afterwards often disqualifies you. Ensure your solicitor lodges the application on time.
5. Ignoring Federal Schemes
The First Home Guarantee (5% deposit, no LMI) and FHSSS (save via super) are often overlooked. Combined with state grants, you can access $40,000-$50,000 in total benefits.
Combining Multiple Schemes
You can stack federal and state schemes for maximum benefit:
Example: First home buyer in Queensland
- Property: $500,000 new home
- First Home Owner Grant: $30,000
- Stamp duty exemption: ~$18,000
- First Home Guarantee: Save ~$15,000 in LMI
- Total benefit: ~$63,000
Do I Need a Broker?
While you can navigate these schemes yourself, a mortgage broker:
- Knows which lenders participate in the First Home Guarantee
- Helps you calculate exact savings from grants and concessions
- Ensures your application is lodged correctly to avoid delays
- Compares 100+ lenders to find the best rate for first home buyers
NIK Finance brokers specialise in first home buyers. We'll walk you through every grant and scheme you're eligible for, help you apply, and find you the best home loan—all for free (lenders pay us).
Final Thoughts
First home buyers in Australia have access to $10,000-$50,000+ in grants and concessions depending on your state and property type. The key is understanding what you're eligible for and lodging applications correctly.
Quick Checklist:
- Check your state's First Home Owner Grant
- Apply for federal First Home Guarantee (5% deposit, no LMI)
- Consider the FHSSS if you're 2-3 years away from buying
- Ensure your property is under the price cap for your state
- Lodge grant applications before or during settlement
Ready to buy your first home? Submit a free quote and a NIK Finance broker will show you exactly what grants and concessions you qualify for—plus find you the best home loan from 100+ lenders.