First Home Buyer Australia 2025: Grants, Stamp Duty Exemptions, and What You Actually Need
Buying your first home in Australia involves navigating a maze of grants, concessions, schemes, and thresholds that vary by state. Done right, you can access tens of thousands of dollars in assistance. Done wrong, you pay full stamp duty and miss grants you were entitled to. This guide covers everything — state by state.
First Home Owner Grant (FHOG) — By State
The FHOG is a one-off payment for first home buyers who purchase or build a new home. It is administered by each state and territory. Amounts and property price caps as of 2025:
| State/Territory | Grant Amount | Property Cap | New Builds Only? |
|---|---|---|---|
| NSW | $10,000 | $750,000 | Yes |
| VIC | $10,000 | $750,000 | Yes |
| QLD | $30,000 | $750,000 | Yes |
| SA | $15,000 | No cap | Yes |
| WA | $10,000 | $750,000 | Yes |
| TAS | $30,000 | No cap | Yes |
| NT | $10,000 | No cap | Yes |
| ACT | None | — | — |
Queensland's $30,000 grant — the highest in the country — applies until 30 June 2025 and is worth pursuing urgently if you are building or buying new in QLD.
Stamp Duty Concessions for First Home Buyers
Stamp duty (transfer duty) is usually the largest upfront cost after the deposit. Most states offer full exemptions or heavy concessions for first home buyers under certain price thresholds:
| State | Full Exemption Up To | Concession Up To |
|---|---|---|
| NSW | $800,000 (new homes) | $1,000,000 |
| VIC | $600,000 | $750,000 |
| QLD | $500,000 | $550,000 |
| SA | No exemption | Reduced rate |
| WA | $430,000 | $530,000 |
| ACT | Full exemption (income tested) | — |
| TAS | 50% reduction | — |
| NT | No exemption | Principal place rebate |
In Victoria, a first home buyer purchasing a $550,000 property saves approximately $28,000 in stamp duty compared to a non-first-home buyer at the same price point.
The Home Guarantee Scheme (Federal)
The federal government's Home Guarantee Scheme allows eligible first home buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The government guarantees up to 15% of the loan value. In 2024-25, 35,000 places were available nationally.
Key conditions: you must be an Australian citizen or permanent resident, earn under $125,000/year (single) or $200,000/year (couple), and the property must be under the price cap for your region. Regional first home buyers have access to additional 5% deposit support under the Regional First Home Buyer Guarantee.
What Is LMI and How Do You Avoid It?
Lenders Mortgage Insurance (LMI) is charged when your deposit is less than 20% of the property value — i.e., your Loan to Value Ratio (LVR) exceeds 80%. LMI protects the lender (not you) against default. On a $700,000 property with a 10% deposit, LMI can cost $8,000–$15,000. Avoid it by:
- Saving a 20% deposit (the cleanest approach)
- Using the federal Home Guarantee Scheme (5% deposit, no LMI)
- Having a guarantor (parent property as additional security)
Use the LMI Calculator to see exactly what you would pay at different deposit levels.
First Home Super Saver Scheme (FHSSS)
Under the FHSSS, you can make voluntary contributions into your superannuation and later withdraw them (up to $50,000) to use as a home deposit. Contributions are taxed at 15% inside super rather than at your marginal rate — the same advantage as salary sacrifice. The withdrawal amount is taxed at your marginal rate minus a 30% tax offset, making it attractive for anyone earning over $45,000/year.
Upfront Costs Checklist
- Deposit: Typically 5–20% of purchase price
- Stamp duty: Varies by state and price (use our calculator)
- Legal/conveyancing fees: $1,500–$3,000
- Building and pest inspection: $500–$1,000
- Loan establishment fee: $0–$600 (varies by lender)
- LMI (if applicable): $0–$30,000+
- Moving costs: $1,000–$5,000
Use the First Home Buyer Calculator to get a personalised upfront cost estimate including stamp duty and FHOG for your state.
Frequently Asked Questions
- Can I use the FHOG on an existing home?
- No. In all states, the FHOG is only available for new homes — either newly built homes, off-the-plan purchases, or owner-built homes. Buying an established property does not qualify.
- Can my partner and I both claim the FHOG?
- No. Only one FHOG is payable per property transaction, regardless of how many eligible applicants are on the contract.
- Does the stamp duty exemption apply if I buy with someone who has owned property before?
- No. All buyers on the contract must be first home buyers to qualify for first home buyer stamp duty exemptions. If one buyer has previously owned property, you lose the concession entirely.