First Home Buyer Guide Australia 2026: Grants, Schemes and Stamp Duty Explained

Buying your first home in Australia in 2026 means navigating a confusing mix of federal schemes, state grants, and stamp duty exemptions — all with different eligibility rules, price caps, and application processes. Get them right and you could save $40,000–$75,000 or more in combined grants and concessions. Miss one and you leave real money on the table.

This guide covers every scheme available nationally and in each state, how much deposit you actually need, and how to combine schemes effectively.

Every first home buyer scheme at a glance

Scheme	Who offers it	Max benefit	Key requirement
First Home Guarantee	Federal	Avoid ~$30,000+ LMI	5% deposit, genuine first home buyer
First Home Super Saver (FHSS)	Federal (ATO)	Up to $50,000 per person from super	Voluntary super contributions made
Help to Buy	Federal	Shared equity — government buys up to 40%	Income tested
First Home Owner Grant (FHOG)	State	$10,000–$30,000	New or substantially renovated home
Stamp duty exemption/concession	State	$0–$40,000+	Varies by state and price
First Home Buyer Choice (NSW)	NSW	Ongoing property tax option	NSW only

Federal scheme 1: First Home Guarantee (5% deposit, no LMI)

The First Home Guarantee (formerly the First Home Loan Deposit Scheme) lets eligible buyers purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI).

Normally, any buyer with less than a 20% deposit must pay LMI — an insurance policy protecting the lender. For a $800,000 home with a 5% deposit, LMI can cost $25,000–$35,000. The First Home Guarantee eliminates this cost by having the government guarantee the remaining 15%.

What changed in 2026:

No income caps (previously $125,000 single / $200,000 couple — removed October 2025)
Unlimited places (previously 35,000 places per year)
Property price caps have increased

Property price caps (from 1 July 2026):

Location	Price cap
Sydney and NSW regional centres	$1,500,000
Brisbane, Gold Coast, Sunshine Coast	$1,000,000
Melbourne and Geelong	$950,000
Perth	$850,000
Adelaide	$800,000
Darwin	$750,000
Other NSW, QLD, WA, TAS, SA, NT	$600,000–$800,000
ACT	$900,000

Eligibility requirements:

Australian citizen or permanent resident, aged 18+
Must be a genuine first home buyer — you have never owned residential property in Australia
Must buy as an owner-occupier (not an investment property)
Must have at least 5% genuine savings
Must apply through a participating lender (major banks and many credit unions participate)

Important: The scheme doesn't reduce your loan or interest rate. You still borrow 95% of the property value and repay it with interest. The guarantee only eliminates the LMI cost.

Use our Stamp Duty Calculator to see your total upfront costs including stamp duty and fees.

Federal scheme 2: First Home Super Saver Scheme (FHSS)

The FHSS lets you make voluntary contributions into super and then withdraw them (plus earnings) as a deposit. Because contributions are taxed at 15% going in (instead of your marginal rate), and withdrawals receive a 30% tax offset, the net tax paid is significantly lower than saving in a regular account.

How much you can withdraw:

Maximum $15,000 per financial year of contributions are eligible
Lifetime maximum of $50,000 per person ($100,000 for couples combined)
You receive 100% of non-concessional contributions back, and 85% of concessional contributions
Associated earnings (based on the ATO's Shortfall Interest Charge rate) are also released

The tax advantage in practice:

If you earn $95,000 (in the 30% marginal bracket + 2% Medicare = 32%) and salary sacrifice $15,000 into super each year for 3 years:

	Regular savings	FHSS (salary sacrifice)
Gross income redirected	$15,000	$15,000
Tax in the year	$4,800 (32%)	$2,250 (15% contributions tax)
Net amount saved	$10,200	$12,750
After 3 years	~$30,600	~$38,250 (85% of contributions)
Tax on withdrawal	Nil (already taxed)	Marginal rate minus 30% offset

For a couple on $95,000 each, the FHSS can generate up to $100,000 in accessible deposit savings with meaningful tax savings compared to saving in a standard account.

How to access FHSS funds:

Make voluntary contributions (salary sacrifice through employer, or personal contributions claiming a tax deduction)
Apply to the ATO for a FHSS determination — this tells you how much you can release
The ATO releases the funds to you (takes 15–25 business days)
You must sign a contract to purchase or build within 12 months of the determination date (extendable once)
Critical: Apply for the determination BEFORE you sign a contract or settle

FHSS limitations:

You need the funds 15–25 business days before settlement — plan ahead
Can't be combined with the Help to Buy scheme
Can be combined with the First Home Guarantee scheme
If you don't end up buying, you can re-contribute the released amount to super (within 12 months) or pay tax on it

Federal scheme 3: Help to Buy (shared equity)

Help to Buy is the federal government's shared equity scheme, allowing eligible buyers to purchase with a smaller deposit while the government takes an equity stake in the property.

How it works:

Government contributes up to 40% of the purchase price for new homes or 30% for existing homes
You need only a 2% deposit
You pay no rent on the government's share
You can buy out the government's stake over time
When you sell, the government receives its proportional share of the sale proceeds

Income limits:

Single: up to $90,000 taxable income
Couples/joint applicants: up to $120,000 combined

Property price caps: Similar to the First Home Guarantee — varies by state and region.

Important: Help to Buy cannot be combined with the First Home Guarantee scheme. You use one or the other.

State-by-state grants and stamp duty (2026)

New South Wales

First Home Owner Grant (FHOG): $10,000 for new homes (not previously occupied) valued up to $600,000, or $10,000 for new homes on vacant land where the total land + build is under $750,000.

Stamp duty:

$0 stamp duty on homes up to $800,000 (full exemption)
Taper/concession on homes $800,001–$1,000,000
Above $1,000,000: standard stamp duty applies

First Home Buyer Choice: NSW buyers of properties up to $1,500,000 can choose to pay an annual property tax ($400 plus 0.3% of land value) instead of upfront stamp duty. This reduces the upfront cost significantly — particularly useful for buyers who don't plan to hold the property for many years.

Revenue NSW: revenue.nsw.gov.au

Victoria

First Home Owner Grant: $10,000 for new homes (first occupied by buyer) valued under $750,000 in regional areas; no FHOG for metro Melbourne for established homes.

Stamp duty:

$0 stamp duty on homes up to $600,000 (full exemption)
Taper on $600,001–$750,000
Standard stamp duty above $750,000

State Revenue Office Victoria: sro.vic.gov.au

Queensland

First Home Owner Grant: Up to $30,000 for new homes (this amount applied until 30 June 2026 — verify current amount with QLD Revenue Office as it may have changed from 1 July 2026). Previously: $15,000 for homes under $750,000.

Stamp duty: Full transfer duty concession for first home buyers purchasing established homes valued up to $700,000; no duty on new homes regardless of value (under concession). Taper applies $700,001–$800,000.

Queensland Revenue Office: qro.qld.gov.au

Western Australia

First Home Owner Grant: $10,000 for new homes or substantially renovated homes valued up to $750,000 (Perth metro) or up to $1,000,000 (south of the 26th parallel regional areas).

Stamp duty: Full exemption for first home buyers on established homes up to $600,000; concessional rate on $600,001–$750,000 (updated May 2026 — verify current thresholds with State Revenue WA).

State Revenue WA: wa.gov.au/land-tax-transfer-duty

South Australia

First Home Owner Grant: $15,000 for new homes valued up to $650,000.

Stamp duty: No first home buyer stamp duty exemption — stamp duty applies at standard rates. However, the SA HomeStart Finance scheme offers low-deposit options through the state government lender.

RevenueSA: revenue.sa.gov.au

Tasmania

First Home Owner Grant: $30,000 for new homes (confirm current rate with State Revenue Tasmania — previously offered at higher rate as an incentive).

Stamp duty: Full stamp duty exemption for first home buyers on properties up to $750,000 (verify current rules post–1 July 2026 as the exemption was previously time-limited).

State Revenue Tasmania: sro.tas.gov.au

ACT

First Home Owner Grant: No separate FHOG — the ACT uses a concession scheme.

Stamp duty: Home Buyer Concession Scheme — income-tested concession reducing or eliminating stamp duty for eligible first home buyers. Gross household income must be under ~$186,000 (varies with number of dependants).

ACT Revenue: revenue.act.gov.au

How much deposit do you actually need?

The minimum depends on which scheme you use:

Scenario	Minimum deposit	LMI?	Notes
Standard purchase	20%	No	Most flexible, no restrictions
First Home Guarantee	5%	No (government guarantee)	Must meet eligibility
Help to Buy	2%	No	Income-tested; government takes equity stake
Standard purchase, no schemes	10–15%	Yes — costs $8,000–$25,000	LMI can be capitalised into loan

Beyond the deposit itself, first home buyers need funds for:

Stamp duty (unless exempt) — 3–5% of purchase price in most states
Legal/conveyancing fees — $1,500–$3,000
Building and pest inspection — $500–$800
Lenders' fees — $0–$800 depending on lender
Moving costs — $1,000–$5,000
Emergency buffer — at least 3 months of mortgage repayments recommended

Total upfront costs beyond the deposit: typically $5,000–$35,000 depending on the state and property value.

Combining schemes: what works together

Not all schemes can be stacked. Here's what can be combined:

	First Home Guarantee	FHSS	Help to Buy	State FHOG	Stamp duty exemption
First Home Guarantee	—	✅ Yes	❌ No	✅ Yes	✅ Yes
FHSS	✅ Yes	—	❌ No	✅ Yes	✅ Yes
Help to Buy	❌ No	❌ No	—	✅ Yes	✅ Yes

The most powerful combination for most buyers: First Home Guarantee + FHSS + State FHOG + Stamp duty exemption

A first home buyer in NSW earning $90,000 who has saved through FHSS:

FHSS withdrawal: ~$38,000 (after 3 years of $12,750/year net contributions)
NSW FHOG: $10,000 (for new home)
Stamp duty saving on $780,000 home: ~$30,000 (partial exemption)
First Home Guarantee: eliminates ~$20,000–$30,000 LMI cost
Total government assistance: $98,000–$108,000

The buying process: key steps for first home buyers

Check eligibility for all schemes before doing anything else — your eligibility affects which lenders to approach and what documents to prepare
Calculate your borrowing power — use our Borrowing Power Calculator to understand your maximum loan
Save your deposit — target 5% genuine savings plus enough for costs; consider FHSS for tax-effective saving
Apply for pre-approval — through a participating lender if using the First Home Guarantee
Search for properties within your budget and scheme price caps
Make an offer / sign a contract — for FHSS users, apply for your ATO determination before this step
Building and pest inspection — don't skip this
Finance approval — lender does formal valuation and approves the loan
Exchange — contracts become binding; pay 10% deposit (or less with 5% genuine savings + guarantee)
Settlement — usually 30–90 days after exchange; you get the keys

Frequently asked questions

What grants are available for first home buyers in Australia in 2026?

The main federal schemes are the First Home Guarantee (5% deposit, no LMI), the First Home Super Saver Scheme (save up to $50,000 in super for your deposit), and Help to Buy (shared equity with the government). Each state also offers a First Home Owner Grant of $10,000–$30,000 for new homes, plus stamp duty exemptions or concessions that can save $0–$40,000 depending on the state and purchase price.

Do I need a 20% deposit to buy my first home?

No. Through the First Home Guarantee you can buy with as little as 5% without paying LMI. Through Help to Buy, you can buy with just 2%. You'll need to meet eligibility criteria for each scheme. Even without a government scheme, you can buy with 10–15% deposit by paying LMI (which can be added to the loan in some cases).

Can I use my super for a first home deposit?

Yes — through the First Home Super Saver Scheme (FHSS). You can withdraw up to $50,000 per person ($100,000 for couples) from voluntary super contributions made since 1 July 2017. The tax treatment is favourable: contributions are taxed at 15% going in, and you receive a 30% tax offset on withdrawal. Apply to the ATO for a determination before you sign a purchase contract.

Is there still stamp duty for first home buyers?

Most states offer full stamp duty exemptions for first home buyers under certain price thresholds: NSW ($0 up to $800,000), VIC ($0 up to $600,000), QLD (full concession up to $700,000 for established homes), WA ($0 up to $600,000). SA has no first home buyer stamp duty exemption. Check your specific state's current thresholds as they change regularly.

What is the First Home Guarantee and how does it work?

The First Home Guarantee allows eligible first home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance. The federal government guarantees the remaining 15% to the lender. There are no income caps (removed October 2025), places are unlimited, and property price caps vary by location from $750,000 to $1,500,000. You still borrow 95% of the purchase price and repay the full loan — the guarantee only eliminates the LMI cost.

Can I combine the FHSS with the First Home Guarantee?

Yes — these two schemes are compatible. Many first home buyers use the FHSS to build their 5% deposit through tax-effective super contributions, then use the First Home Guarantee to purchase without paying LMI. The FHSS cannot be combined with Help to Buy, and the First Home Guarantee cannot be combined with Help to Buy.

Grant amounts, price caps, income thresholds and eligibility rules change regularly. Always verify current details with the relevant government agency before making decisions. This article is for general information only and does not constitute financial, legal or tax advice.