First Home Buyer in Australia: Support Programs to Know About

Buying your first home in Australia comes with a range of support programs from both federal and state governments. Many first home buyers aren’t aware of this help, or don’t check whether they qualify. Understanding the overview first will help you plan your finances better.

Why do these programs exist?

The Australian government wants to support first home buyers because property prices in major cities have risen sharply over many years, making it increasingly hard to save a deposit. These support programs aim to lower the initial barrier and help more people access home ownership.

The main groups of programs

First Home Owner Grant (FHOG)

The FHOG is a one-off payment made by a state or territory government to buyers of a new home (newly built or just completed). Each state has its own grant amount and conditions. Not every state offers the FHOG for an established (previously owned) home.

Common conditions usually include: never having owned a home in Australia, being a permanent resident or Australian citizen, and the home being your principal place of residence.

The specific grant amount varies by state and over time — check directly with the Revenue Office of the state where you are buying.

Stamp duty concession or exemption

Stamp duty (the property transfer tax) is a major cost when buying a home. Most states offer a concession or exemption on stamp duty for first home buyers within a certain price threshold. The price thresholds and the level of relief differ by state and change over time.

First Home Guarantee (federal)

A Federal Government program that allows eligible people to buy a home with a smaller deposit than usual, without paying Lenders Mortgage Insurance (LMI). The government guarantees the remaining portion of the loan. There is a limited number of places each year and a maximum property price threshold (which differs by city/region).

Home Guarantee Scheme — other forms

Alongside the First Home Guarantee, the Home Guarantee Scheme also includes streams for single parents and for buyers in regional areas. Each form has its own specific conditions.

First Home Super Saver Scheme (FHSS)

This scheme lets you save a home deposit through your superannuation account, taking advantage of super’s tax concessions. There are limits on the amount you can withdraw and conditions that apply. Check directly on the ATO website for details.

States may have their own additional programs

Many states have additional programs, such as concessions for homes in certain areas, or support for buyers building a new home. Check your state government’s website.

Common conditions

Although the details differ, most programs share some common requirements:

• You don’t already own a home in Australia (you and your spouse if buying together)
• You are an Australian citizen or permanent resident
• The home will be your principal place of residence (not an investment)
• Your income is below the set threshold (for the federal programs)

How to approach it

Don’t try to piece the conditions together yourself, because the rules change frequently. An effective approach:

1. Decide which state you will buy in
2. Check the website of that state’s Revenue Office or OSR
3. Talk to a mortgage broker — they usually know the current programs and the specific conditions

Note: Support programs change with government budgets and policy. Check directly with the relevant authority for the most accurate and up-to-date information at the time you buy.