First home buyer grants and stamp duty concessions, state by state

Government support for first-home buyers is real, but it isn't one national rulebook. Grants and stamp duty concessions are set state by state, and they change fairly often. Here's what to check before you assume what you'll get.

The First Home Owner Grant (FHOG): a one-off payment from your state

The First Home Owner Grant is a one-off payment from your state or territory government, designed to help first-home buyers get into the market. A few things tend to hold true across most states, though the specifics differ:

• The grant amount varies by state and is reviewed periodically, so don't rely on a figure you saw a while ago.
• It's usually only available for new homes or off-the-plan purchases, not established properties, though this varies by state.
• There are typically eligibility conditions around income, property value caps and whether you or your co-buyer have owned property before.

Because these details shift, the safest approach is to check your state's current FHOG settings before you factor an amount into your budget.

Stamp duty concessions and exemptions for first-home buyers

Most states and territories offer some kind of stamp duty discount or full exemption for eligible first-home buyers. The concession is generally tied to a purchase price threshold: buy under the threshold and you may pay little or no stamp duty, buy above it and the concession usually tapers off or disappears.

A few general points worth knowing:

• Thresholds and concession amounts are different in every state, and they're adjusted from time to time.
• Concessions are usually only available if you're buying to live in the property, not to rent out.
• They generally apply to established homes as well as new builds, unlike the FHOG, though again this varies by state, so it's worth checking both settings together.

The calculator below shows the standard transfer duty for your state and price. Switch the buyer type to first-home buyer to see an indicative concession, then confirm the exact relief with your state or territory revenue office.

Investors don't get first-home concessions

If you're weighing up whether to buy the home you'll live in first or start with an investment property instead, this is an important piece of the puzzle: first-home grants and stamp duty concessions are only available to eligible owner-occupiers. An investment purchase, even your first one, generally won't qualify.

That doesn't make investing first the wrong choice: some first-time buyers do it deliberately as part of a rentvesting strategy. But it does mean the upfront cost comparison between the two paths is different to what you might expect, so it's worth modelling properly before deciding, rather than assuming.

Check your state before you budget

Every state and territory runs its own version of the FHOG and its own stamp duty concession or exemption, with different amounts, price caps and property-type rules. The reliable move is to search your state or territory revenue office's current first-home buyer page, since these settings change with each state budget. If you're comparing suburbs across a border, don't assume the rules are similar; they can differ substantially.

A mortgage broker can help you sense-check what you're likely to be eligible for once you have a property and price range in mind.

How this fits with your deposit and borrowing power

Grants and concessions reduce your upfront costs, but they don't change how much you can borrow, and they won't appear until settlement in most cases. It's worth planning your deposit and cash-needed figure assuming you may not receive a grant, then treating any concession as a bonus if it comes through, rather than building your budget around it in advance.

Grants and concessions aren't the only federal support, either. If your deposit is the main hurdle, the 5% Deposit Scheme lets eligible first-home buyers purchase with a 5% deposit and no LMI, and Help to Buy is a shared-equity scheme where the government takes a stake to shrink your loan. Both have their own eligibility rules, so they're worth checking alongside your state's grants.

What applies depends on your state and price, so it's worth checking exactly what you qualify for before you buy. If you'd like help working out what you're likely eligible for, koala financial offers a free, no-obligation discovery call.

Frequently asked questions