First Home Buyer Grants & Schemes in Australia (2025)
Last updated: 7 May 2025
Australia offers a patchwork of federal and state schemes to help first home buyers enter the market. Understanding which ones you qualify for — and in what order to use them — can save you tens of thousands of dollars. Here's the complete picture for 2025.
Federal government schemes
1. First Home Guarantee (FHBG)
The First Home Guarantee (formerly First Home Loan Deposit Scheme) allows eligible first home buyers to purchase with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI). The government guarantees up to 15% of the property value, effectively acting as the additional security the lender requires.
| Detail | 2025 conditions |
|---|---|
| Deposit required | As little as 5% |
| LMI waived? | Yes — government guarantee replaces LMI |
| Annual places | 35,000 per year (shared with other guarantees) |
| Income cap (singles) | $125,000 taxable income |
| Income cap (couples) | $200,000 combined taxable income |
| Property price caps | Varies by state/city (see below) |
| Who administers it? | Housing Australia — apply through participating lenders |
FHBG property price caps (2025)
| State/Territory | Capital city/regional centre | Other areas |
|---|---|---|
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $600,000 | $450,000 |
| SA | $600,000 | $450,000 |
| TAS | $600,000 | $450,000 |
| ACT | $750,000 | — |
| NT | $600,000 | — |
2. Regional First Home Buyer Guarantee
The same structure as FHBG but specifically for buyers purchasing in regional Australia. Requires the buyer to have lived in the regional area (or an adjacent area) for at least 12 months. 10,000 places per year.
3. Family Home Guarantee
Designed for single parents and single legal guardians with at least one dependent child. Allows purchase with a 2% deposit without LMI. Income cap $125,000. 5,000 places per year.
4. First Home Super Saver (FHSS) Scheme
Allows voluntary super contributions to be withdrawn for a first home deposit. Contributions are taxed at 15% (instead of your marginal rate), and withdrawals are taxed at your marginal rate minus a 30% offset — creating a significant tax advantage.
| Detail | Conditions |
|---|---|
| Maximum voluntary contributions eligible | $15,000 per financial year |
| Maximum total withdrawal | $50,000 per person ($100,000 for couples) |
| Tax saving (on 34.5% marginal rate) | Up to 19.5% on contributions |
| Withdrawal must be used within | 12 months of requesting release |
| Must not have owned property before | Yes — strict rule |
On a $50,000 FHSS withdrawal for a taxpayer in the 32.5% bracket, the tax saving is approximately $7,500–$10,000 compared to saving outside super. This is one of the most underused federal schemes.
State and territory grants
First Home Owner Grant (FHOG)
Each state and territory administers its own First Home Owner Grant — typically for new builds only. The grant amounts and conditions vary significantly:
| State | Grant amount | Eligible properties | Price cap |
|---|---|---|---|
| NSW | $10,000 | New builds only | $600,000 |
| VIC | $10,000 | Regional new builds only | $750,000 |
| QLD | $30,000 | New builds | $750,000 |
| WA | $10,000 | New builds | $750,000 |
| SA | $15,000 | New builds | No cap |
| TAS | $30,000 | New builds | No cap |
| ACT | No FHOG | — | — |
| NT | $10,000 | New or established | No cap |
Stamp duty concessions by state
Most states offer stamp duty exemptions or concessions for first home buyers that are worth significantly more than the FHOG:
- NSW: Full exemption under $800,000 (~$30,000 saving on a $799k property). Concession up to $1,000,000.
- VIC: Full exemption under $600,000 (~$31,000 saving). Concession up to $750,000.
- QLD: Full exemption under $500,000 (~$15,000 saving). Concession up to $550,000.
- WA: Full exemption under $430,000. Concession up to $530,000.
- SA: No stamp duty concession on established homes (off-the-plan only).
- TAS: 50% stamp duty reduction on established homes under $600,000.
How to stack the schemes
The schemes are largely stackable — a savvy first home buyer can use multiple simultaneously:
- Save a deposit partly through FHSS (tax-advantaged savings in super)
- Use FHBG to buy with 5% deposit, avoiding LMI
- Claim the state FHOG (if buying a new build)
- Receive stamp duty exemption from the state government
For a first home buyer in NSW buying a $750,000 new build: FHSS tax saving (~$8,000) + FHBG (LMI saving ~$15,000) + FHOG ($10,000) + stamp duty exemption ($0 vs ~$29,000 standard) = total benefit of approximately $62,000.
Scheme conditions and amounts change regularly. Always verify current eligibility with Housing Australia, your state revenue office, and a licensed mortgage broker. Sources: Housing Australia, state revenue offices, ATO FHSS guide. Last updated May 2025.