Grants and Incentives for First Home buyers 

1. First Home Owner Grant (FHOG): A one-off government grant available to first-time homebuyers in each state and territory.

Purpose: The FHOG is a government initiative designed to assist first-time buyers in entering the property market. This one-off grant provides financial support to help offset the upfront costs associated with purchasing or building a home.

Eligibility Criteria: While specific requirements vary between states and territories, general eligibility guidelines include:

  • Australian citizenship or permanent residency: In some cases, specific visa holders may be eligible.
  • Age: Usually, you must be over 18.
  • First home purchase: The property must be your first residential property purchase in Australia.
  • Occupancy requirement: This is a crucial condition. Let's look at NSW and VIC specifically:
    • NSW: You must move into the property as your principal place of residence within 12 months of purchase or completion of construction. You are then required to live there continuously for at least 6 months.
    • VIC: Similar to NSW, you must move in within 12 months of settlement or completion of construction and live there continuously for at least 6 months.
  • Property type: The FHOG usually applies to new homes or those purchased off-the-plan.

Grant Amounts:

  • NSW:
    • Up to $10,000 for new homes valued at $750,000 or less.
    • Up to $10,000 for new homes valued between $750,000 and $900,000 in designated regional areas.
  • VIC:
    • Up to $10,000 for new homes valued at $650,000 and $800,000 in designated regional areas.​

2. Home Guarantee Scheme: Helps eligible buyers purchase a home sooner, even with a small deposit. The government acts as a guarantor, potentially allowing you to avoid Lender's Mortgage Insurance (LMI). Includes:

  • First Home Guarantee (FHBG)
  • Family Home Guarantee (for single parents)
  • Regional Home Guarantee (for buying in regional areas)
  • You can find more information on https://www.nhfic.gov.au/ 

3. First Home Super Saver Scheme (FHSSS): Allows you to make voluntary contributions to your superannuation and use the funds (plus accumulated earnings) to help with a deposit on your first home.
More information is available on the Australian Taxation Office website: https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/

4. First Home Buyer Assistance Scheme (NSW): Offers full or partial stamp duty exemptions for properties under certain price thresholds:
New & Existing Homes: Full exemption for properties up to $650,000 and concessions on properties between $650,000 and $800,000.
Vacant Land: Full exemption for land up to $350,000 and concessions on land between $350,000 and $450,000.

5. First Home Buyer Choice (NSW): This option allows eligible first-time buyers to pay an annual property tax instead of a lump-sum stamp duty fee. Further information is available on the Revenue NSW

6. First Home Owner Duty Exemptions/Concessions (VIC): Significant duty reductions or exemptions on properties below specified amounts. See more on the State Revenue Office of Victoria

Typical Pre-Requirements for the First Home Owner Grant

  • Citizenship/Residency: Be an Australian citizen or permanent resident.
  • First Home Purchase: You must be purchasing your first residential property in Australia.
  • Prior property ownership: Generally, neither you nor your spouse/partner can have owned residential property in Australia before.
  • Occupancy: You must intend to live in the property as your principal place of residence for a minimum period (usually 6-12 months).

Important Notes

  • Eligibility criteria, price thresholds, and benefits associated with these schemes can change. Always refer to the latest information on your state's relevant websites.
  • Professional financial advice is recommended.

Helpful Resources