First Home Owner’s Grant: What you need to know in 2024

If you are one of the thousands of Australians who have been diligent and saved for a house deposit and are ready to make the next step toward home ownership, it’s likely you’ve heard of the First Home Owner’s Grant. 

How does the first home buyers grant work in Australia?

The First Home Owner’s Grant (FHOG) was a Commonwealth initiative to offset the impact of GST on home ownership. Though the FHOG is federally administered, how your state or territory implements the grant as well as other concessions or offsets may determine the final amount you’re given. 

This may be in the form of a direct cash payment or discounts on stamp duty or other taxes through other mechanisms. Some states or territories may have different wording or terms for the grant which effectively gives applicants more or less the same advantages. 

There is also a scheme in which the government guarantees a portion of your home loan to avoid paying Lender’s Mortgage Insurance if you have less than 20% deposit. This is known as the Home Guarantee Scheme and is administered by the National Housing Finance and Investment Corporation (NHFIC). Again, states may administer this scheme internally according to their own rules.

Here is a breakdown of what’s available to first home buyers by state and territory updated for 2024.

Who is considered a first home buyer in Australia?

You must be over the age of 18 and provide proof of an eligible transaction – either a contract to buy a home or completion of certain building milestones. These may vary from state to state. You must also provide proof of Australian citizenship or residency; or be a New Zealand citizen with Australian permanent residency. You may apply jointly with a partner, co-buyer, or spouse, which counts as one application.

You or your partner or spouse must not have owned a home before 1 July 2000 to be eligible for these grants.

Do couples lose first time buyer status if one partner bought in the past?

In most cases, yes. If one half of a couple has purchased a home before either as a spouse or de facto partner, they will not be eligible for a first time buyer grant a second time. However, State or Territory offices of revenue may review your case if it is an outlier, e.g,, if you purchased a home before 1 July 2000 or did not occupy the home for a continuous six months.

First Home Buyers Grant Australian Capital Territory

From 1st of July 2019, the ACT introduced the Home Buyer Concession Scheme (HBCS) which replaces the First Home Owner Grant. It waives the stamp duty paid for properties valued under $1 million, and grants concessions for properties over $1 million. 

This program is available for all homes in the ACT. It covers all residential properties in the ACT, regardless of price, including both new and existing residences as well as unoccupied land. A cap on the amount of tax that will be waived under the HBCS has been put in place as of July 1, 2021.

First Home Buyers Grant NSW

The First Home Buyers Grant in New South Wales gives for first-home buyers who want to buy a new home or dwelling or purchase a new or significantly renovated property $10,000 with a value of $600,000 or build a new home with a value (including land) of up to $750,000. 

New South Wales government also extends the Shared Equity Home Buyer Helper scheme to single parents, older singles, key workers, or domestic abuse survivors who are new home buyers. The state government pays up to 40% of the buying price of a new house or 30% of the price of an existing one. This makes it easier for participants to get a mortgage by lowering the down payment needed to as little as 2%.

The NSW government also grants the First Home Buyers Assistance scheme. If a first-time buyer purchases a new house, an existing home, or undeveloped property valued up to $1 million in value, they are eligible for a lower rate on stamp duty, with homes under $800,000 eligible for a full waiver.

First Home Buyers Grant Victoria

The First Home Buyers Grant in Victoria gives $10,000 to eligible first-time home owners buying a home valued at less than $750,000. The Victorian state government also gives first-home buyers a one-time duty exemption up to $600,000 for a primary place of residence (PPR), or a concession for homes valued between $600,001 to $750,000.

A minimum deposit of 5% of the purchase price is required, and the government will let qualified participants with a contribution of 25% take part. The remaining sum will be supplied by a cooperating lender. Over time, you repurchase the government’s portion. Both the grant and the scheme are available to first home buyers.

First Home Buyers Grant Tasmania

The First Home Buyers Grant in Tasmania offers $30,000 to eligible applicants as a one-time payment until 30 June 2024. Discounts on stamp duty also apply for homes under $600,000 in value.

First Home Buyers Grant Queensland

Much like Tasmania, the First Home Buyers Grant in Queensland is also set at $30,000 for eligible applicants. If you move into the property within 12 months of purchase, you may also be eligible for the Home Concession. If your house is worth less than $500,000, the government will waive your stamp duty. You will pay a lower stamp duty rate if your total home value is between $500,001 and $550,000.

If you are building your first home on vacant land, you may apply for the First Home Vacant Land Concession. For land selling for less than $250,000, there is no stamp duty; however, for land selling for between $250,000 and $400,000, you may apply for a discount on your stamp duty.

First Home Buyers Grant South Australia

South Australia’s First Home Buyers Grant is set at $15,000 for eligible applicants. Like other states, the SA government also reduces or waives stamp duty for homes of certain values, known as the Stamp Duty Relief for Eligible First Home Buyers. This means for new homes valued under $650,000 or $400,000 for undeveloped land, there is no stamp duty.  For new residences priced at $700,000 or for empty land valued at $450,000, there are stamp duty discounts available.

First Home Owner Grant Northern Territory

The First Home Owner Grant in the Northern Territory gives eligible participants $10,000 towards the purchase or construction of their first home. For low-income earners, they may be eligible for the HomeBuild Access scheme, which grants low deposit home loans or subsidised interest rates for new-built homes or for vacant land with the intent to build. These have price caps. For properties with two bedrooms, the cap is $475,000. For properties with three bedrooms or more, the maximum price allowed is $550,000.

Unfortunately, the Territory home owner discount, Household Goods Grant Scheme, and the BuildBonus grants have been discontinued.

First Home Buyers Grant Western Australia

The Western Australia First Home Owner Grant is a one-off payment of $10,000 to help first-time home owners buy or build a new residential property for use as their primary place of residence. First Home Owner Grants also qualify applicants for the First Home Owner Rate, a concessional rate of stamp duty. However, there are caveats. The home must be new and the “unencumbered value of the land, or the land and home under the transaction does not exceed the dutiable value thresholds.”

These thresholds are:

• The unencumbered value of the home and land together must not exceed $530,00.
• Duty is waived if the dutiable value does not exceed $430,000.
• If the dutiable value is between $430,000 and $530,000 the duty rate is set at $19.19 for every $100 or part thereof for every dollar after $430,001.
• The unencumbered value of vacant land must not exceed $400,000.
• Duty is waived if the unencumbered value of vacant land does not exceed $300,000.
• If the dutiable value falls between these limits, duty is payable at a rate of $13.01 for every $100 or part thereof.

For fact sheets and detailed information, visit your state or territory revenue office or treasury website.

Related FAQs for first home buyers

Can I get a home loan with 5% deposit?

Yes, you can buy a home loan with a 5% deposit under certain conditions. In some states, you may qualify for assistance programs such as the Home Guarantee Scheme. If you do not qualify, you may have to take out Lender’s Mortgage Insurance (LMI) until you hit the 20% Loan-to-Value ratio or equity in your home.

Can I use my super to buy a house?

Yes, you can withdraw money from your superannuation fund to buy a house under the First Home Super Saver Scheme. The first $25,000 that goes into your super account each year is taxed at just 15% and not at the usual marginal tax rates. A first home buyer can contribute up to $15,000 a year under the scheme with a cap of $30,000.

How much can I borrow with the First Home guarantee?

This depends on the location of your intended purchase such as the state or whether it’s in a metropolitan area or regional area. For example, the price cap on the First Home Guarantee scheme in Sydney metro is $900,000; the rest of the state the price ceiling is set at $750,000. These vary from state to state and are outlined in a table at Housing Australia here.

Do first home buyers pay LMI?

No. If first home buyers have a 20% or larger deposit, they will not have to pay Lenders Mortgage Insurance. 

How much is LMI on 5% deposit?

This depends on the amount being borrowed. If we take a simple example, borrowing $95,000 against a $100,000 home, the estimated LMI could be between $2,500 and $3,000, depending on the insurer. Several factors influence LMI costs such as the location (state) of your home, your income or industry of employment, whether you’re a first home buyer or not, if you’re investing or buying for owner-occupation, and the loan-to-value ratio.

Is there stamp duty for first home buyers?

Yes, stamp duty is payable on all property transactions. However, in some states, first home buyers may be eligible for concessions or waivers, as described above.

Does a HECS debt affect a home loan?

Yes. Brokers and lenders will look at any higher education debts such as HECS or FEE-HELP debts as part of your overall creditworthiness assessment. This may affect how much you can borrow or whether you are eligible for a mortgage at all.