First Home Buyer Grant (also called First Home Owner Grant or FHOG) is a one-off government payment to help first home buyers enter the property market. The grant amount and eligibility vary by state, typically $10,000-$15,000 for new or substantially renovated homes.
How the Grant Works
Each Australian state and territory administers its own First Home Buyer Grant with different rules, amounts, and property types.
Key features:
- One-off payment: You can only receive it once in your lifetime
- For new/renovated properties: Most states only grant for new builds or major renovations
- Paid at settlement: Usually paid directly to your lender, reducing loan amount
- Combined with other benefits: Can stack with stamp duty concessions and First Home Guarantee
Typical amounts:
- NSW: $10,000 (new homes only)
- VIC: $10,000 (new homes, regional areas)
- QLD: $15,000-$30,000 (varies by property type and location)
- WA: $10,000 (new homes)
- SA: $15,000 (new builds)
- TAS: $20,000-$30,000 (new homes, higher for regional)
- ACT: Currently suspended
- NT: $10,000 (new homes)
State-by-State Breakdown
New South Wales
Grant amount: $10,000
Eligibility:
- First home buyer (never owned property in Australia)
- Australian citizen or permanent resident
- At least one buyer must be 18+
- Must move in within 12 months and live there for 6+ continuous months
Property requirements:
- New home or substantially renovated home
- Purchase price: Up to $600,000 (regional) or $800,000 (metro)
- Must be residential property (not vacant land)
Example:
- Purchase new townhouse in Newcastle: $580,000
- Deposit: $58,000 (10%)
- Grant: $10,000 (paid at settlement)
- Reduces loan to: $512,000
- Effective deposit: $68,000 (11.7%)
Stamp duty bonus:
- NSW first home buyers also get stamp duty exemptions:
- New homes under $800,000: $0 stamp duty
- Existing homes under $650,000: $0 stamp duty
- Combined savings: $10,000 grant + $20,000-$30,000 stamp duty = $30,000-$40,000 total
Victoria
Grant amount: $10,000
Eligibility:
- First home buyer
- Australian citizen or permanent resident
- Must move in within 12 months and live there for 12+ continuous months
Property requirements:
- New home or substantially renovated home
- Purchase price: Up to $750,000
- Must be in regional Victoria
- Metro Melbourne: No longer eligible (grant removed for metro in 2021)
Regional areas include:
- Geelong, Ballarat, Bendigo, Shepparton, Wodonga, Warrnambool, etc.
- Defined as outside Greater Melbourne
Example:
- Purchase new house in Geelong: $650,000
- Deposit: $65,000 (10%)
- Grant: $10,000
- Stamp duty: $0 (first home buyer exemption under $600K)
- Total upfront cost: $65,000 (vs $75,000 without grant)
Metro buyers:
- No FHOG, but still get stamp duty exemption (up to $600K)
- $600,000 property: Save $31,070 in stamp duty
Queensland
Grant amount: $15,000-$30,000 (depending on location and property type)
Eligibility:
- First home buyer
- Australian citizen or permanent resident
- Must move in within 12 months and live there for 6+ continuous months (or 12 months non-continuous within first 2 years)
Property requirements:
- New home or substantially renovated home
- Purchase price: Up to $750,000
Grant tiers:
- $30,000: New home in regional QLD
- $15,000: New home in SEQ (Brisbane, Gold Coast, Sunshine Coast)
Example 1: Brisbane
- New apartment in Brisbane: $580,000
- Deposit: $58,000 (10%)
- Grant: $15,000
- Loan: $507,000
- Effective deposit: $73,000 (12.6%)
Example 2: Regional QLD (Cairns)
- New house in Cairns: $520,000
- Deposit: $52,000 (10%)
- Grant: $30,000
- Loan: $438,000
- Effective deposit: $82,000 (15.8%)
- No LMI required (under 80% LVR with grant)
Stamp duty bonus:
- First home buyers: Potential $0 stamp duty on properties under $550,000
- Combined savings: $30,000 grant + $15,000 stamp duty = $45,000 total
Western Australia
Grant amount: $10,000
Eligibility:
- First home buyer
- Australian citizen or permanent resident
- Must move in within 12 months and live there for 6+ continuous months
Property requirements:
- New home or off-the-plan purchase
- Purchase price: Up to $750,000
- Includes house and land packages
Example:
- New house and land package in Perth: $550,000
- Deposit: $55,000 (10%)
- Grant: $10,000
- Loan: $485,000
- Transfer duty: ~$18,000 (separate cost, not reduced by grant)
- Total upfront: $63,000 ($55,000 deposit + $18,000 duty - $10,000 grant)
Regional boost:
- Regional WA may offer additional grants/incentives (check local councils)
South Australia
Grant amount: $15,000
Eligibility:
- First home buyer
- Australian citizen or permanent resident
- Must move in within 12 months and live there for 6+ continuous months
Property requirements:
- New residential building
- Purchase price or building contract: Up to $650,000
Example:
- New home in Adelaide: $580,000
- Deposit: $58,000 (10%)
- Grant: $15,000
- Stamp duty: ~$21,000 (first home concession may apply)
- Loan: $507,000
- Net upfront cost: $64,000
Tasmania
Grant amount: $20,000-$30,000
Eligibility:
- First home buyer
- Australian citizen or permanent resident
- Must move in within 12 months and live there for 6+ continuous months
Property requirements:
- New or substantially renovated home
- Purchase price: Up to $750,000
Grant tiers:
- $30,000: New home anywhere in Tasmania (standard)
- $20,000: Existing home (in some programs)
Example:
- New home in Hobart: $620,000
- Deposit: $62,000 (10%)
- Grant: $30,000
- Stamp duty: $0 (50% discount brings it to ~$10K, but offset by grant structure)
- Loan: $528,000
- Effective deposit: $92,000 (14.8%)
Northern Territory
Grant amount: $10,000
Eligibility:
- First home buyer
- Australian citizen or permanent resident
- Must move in within 12 months and live there for 6+ continuous months
Property requirements:
- New or established home
- No price cap (unique among states)
Example:
- New home in Darwin: $520,000
- Deposit: $52,000 (10%)
- Grant: $10,000
- Stamp duty: ~$23,700 (full rate)
- Loan: $458,000
- Net upfront cost: $65,700
Australian Capital Territory
Grant status: Currently suspended/no grant available
Alternative benefits:
- Stamp duty exemptions for first home buyers (properties under $600K)
- Home Buyer Concession Scheme (duty concessions up to $750K)
Example:
- First home buyer purchasing $580,000 property
- Grant: $0
- Stamp duty: ~$1,500 (heavily reduced due to ACT's progressive no-stamp-duty transition)
What Qualifies as a "New Home"?
Newly Built Homes
Includes:
- Brand new house never occupied
- Off-the-plan apartment
- Display home (never lived in)
- House and land package (you build)
Criteria:
- Must be first occupancy as a residence
- Completed within last 12 months (varies by state)
- Never been sold or occupied
Substantially Renovated Homes
Definition varies by state, typically:
- Home renovated where at least 50% of existing structure removed
- Cost of renovations exceeds 50% of property value
- Essentially rebuilt
Example:
- Bought old house for $400,000
- Demolished and rebuilt: $350,000
- Total: $750,000
- Qualifies as "substantially renovated" (rebuild > 50% of value)
Does NOT qualify:
- Cosmetic renovations (painting, new kitchen, bathroom)
- Extensions or additions
- Knockdown-rebuild where you owned the land before starting (some states)
Off-the-Plan Purchases
Qualifies: Yes, in all states offering FHOG
Process:
- Sign contract for apartment not yet built
- Property completes construction
- Settle on property
- Grant paid at settlement
Example:
- Sign contract in 2024 for $620,000 apartment
- Building completes in 2026
- Grant: $10,000-$15,000 (based on state)
- Paid at 2026 settlement
How to Apply for the Grant
Application Process
Step 1: Check eligibility
- Confirm you've never owned property in Australia
- Verify property meets "new home" criteria
- Check price caps for your state
Step 2: Engage conveyancer/solicitor
- They typically handle grant application
- Cost: $1,200-$2,000 (includes all conveyancing)
Step 3: Submit application
- Usually submitted when you exchange contracts
- Required documents:
- Contract of sale
- Proof of identity (license, passport)
- Proof of citizenship/residency
- Loan approval documents
- Declaration you've never owned property
Step 4: Approval
- State revenue office reviews application
- Processing: 2-6 weeks
- Approval letter issued
Step 5: Payment at settlement
- Grant paid directly to your lender (reduces loan)
- Or paid to you (if buying without loan—rare)
Timing
When to apply:
- Within 14 days of signing contract (some states)
- Before settlement (most states)
- Varies by state—check specific deadlines
Processing time:
- NSW: 4-6 weeks
- VIC: 2-4 weeks
- QLD: 4-6 weeks
- WA: 4-6 weeks
Payment:
- Grant funds released at settlement
- Directly to lender to reduce loan amount
- Shown as credit on settlement statement
Combining with Other Benefits
First Home Guarantee Scheme (Federal)
Can stack: Yes, you can use FHOG + First Home Guarantee
Example:
- QLD first home buyer
- New home: $600,000
- Deposit saved: $30,000 (5%)
- FHOG: $15,000
- Effective deposit: $45,000 (7.5%)
- First Home Guarantee: Avoids LMI on 5% deposit
- Total savings: $15,000 grant + $20,000 LMI = $35,000
Stamp Duty Exemptions/Concessions
Can stack: Yes, in most states
Example: NSW
- New home: $750,000
- FHOG: $10,000
- Stamp duty exemption: $29,490 (would normally pay)
- Total benefits: $39,490
Example: VIC (regional)
- New home in Geelong: $650,000
- FHOG: $10,000
- Stamp duty exemption: $31,070
- Total benefits: $41,070
Shared Equity Schemes (State-Based)
Some states offer shared equity programs where government co-invests.
Example: VIC Homebuyer Fund
- Government contributes up to 25% of purchase price
- You buy with as little as 5% deposit
- Can combine with FHOG
Scenario:
- Regional VIC new home: $600,000
- Your deposit: $30,000 (5%)
- FHOG: $10,000
- Vic Gov co-invests: $150,000 (25%)
- Your loan: $410,000
- LVR on your loan: 68% (no LMI, low rate)
Common Mistakes to Avoid
1. Buying Established Property
Scenario:
- First home buyer in NSW
- Buys existing house for $620,000 (thinking they'll get $10,000 grant)
- Reality: No grant (must be new home)
- Missed opportunity to buy new and get $10,000
Solution: Understand "new home" requirements before purchasing.
2. Exceeding Price Caps
Scenario:
- QLD first home buyer
- Buys new home for $780,000 (above $750,000 cap)
- Reality: No grant (over price limit)
Better approach:
- Buy $745,000 property (just under cap)
- Get $15,000 grant
- Negotiate to separate chattels (furniture) from purchase price
3. Not Living in the Property
Scenario:
- Receives $15,000 grant
- Moves in for 3 months, then rents it out (requirement is 6-12 months occupancy)
- State revenue office audits
- Must repay full $15,000 + penalties
Solution: Ensure you meet residency requirements (6-12 months depending on state).
4. Previous Property Ownership
Scenario:
- Owned investment property 5 years ago (sold it)
- Thinks they're a "first home buyer" now
- Applies for grant on new property
- Application rejected: Must have NEVER owned property
Definition: First home buyer = you've never owned any property anywhere in Australia at any time.
5. Missing Application Deadlines
Scenario:
- Signs contract in January
- Forgets to apply for grant
- Settles in March
- Tries to apply after settlement
- Too late: Most states require application before settlement
Solution: Apply within 14 days of signing contract (or as required by your state).
6. Renovation vs New Build Confusion
Scenario:
- Buys old house for $350,000
- Spends $80,000 on new kitchen, bathroom, flooring
- Thinks it qualifies as "substantially renovated"
- Reality: Doesn't qualify (cosmetic reno, not 50% structural removal)
Solution: Understand your state's definition of "substantially renovated" (usually requires demolition/rebuild of 50%+ of structure).
Real-World Examples
Example 1: Brisbane First Home Buyer (Success)
Profile:
- Age: 29, income $85,000
- Savings: $50,000
- Target: New apartment, close to CBD
Purchase:
- New apartment in South Brisbane: $560,000
- Deposit: $50,000 (8.9%)
- FHOG (QLD): $15,000
- Stamp duty: $0 (exemption under $550K)
- Effective deposit: $65,000 (11.6%)
- Loan: $495,000 (88.4% LVR)
- LMI: $0 (using First Home Guarantee)
Total benefits:
- FHOG: $15,000
- Stamp duty saving: $14,500
- LMI saving: $16,000
- Total: $45,500
Outcome:
- Entered market 6 months earlier than planned
- Lower loan amount = $160/month less in repayments
- Saved $45,500 in upfront costs
Example 2: Regional VIC First Home Buyer (Success)
Profile:
- Couple, combined income $130,000
- Savings: $70,000
- Target: New house, regional VIC
Purchase:
- New house and land package in Ballarat: $580,000
- Deposit: $70,000 (12%)
- FHOG (VIC regional): $10,000
- Stamp duty: $0 (exemption)
- Effective deposit: $80,000 (13.8%)
- Loan: $500,000 (86.2% LVR)
- LMI: $0 (using Family Guarantee from parents)
Total benefits:
- FHOG: $10,000
- Stamp duty saving: $20,475
- LMI saving: $17,500 (via family guarantee)
- Total: $47,975
Outcome:
- Bought larger home than possible in Melbourne
- Regional lifestyle with major savings
- $47,975 redirected to home improvements and furnishing
Example 3: Sydney First Home Buyer (Missed Opportunity)
Profile:
- Age: 26, income $95,000
- Savings: $65,000
- Target: Any property to get into market
Purchase (what they did):
- Existing apartment in Parramatta: $620,000
- Deposit: $62,000 (10%)
- FHOG: $0 (established property = no grant)
- Stamp duty: $0 (exemption under $650K for established)
- Loan: $558,000
- LMI: $18,000 (capitalized into loan = $576,000 total)
What they should have done:
- New apartment nearby: $640,000
- Deposit: $64,000 (10%)
- FHOG (NSW new): $10,000
- Stamp duty: $0 (exemption under $800K for new)
- Effective deposit: $74,000
- Loan: $566,000 (88.4% LVR)
- LMI: $0 (using First Home Guarantee)
Missed savings:
- FHOG not received: $10,000
- LMI paid unnecessarily: $18,000
- Total missed: $28,000
Lesson: Research grant eligibility before committing to a property type.
Tax Implications
Good news: The First Home Buyer Grant is NOT taxable income.
What this means:
- $15,000 grant doesn't increase your taxable income
- No tax owed on the grant
- Won't affect your tax bracket
Comparison to income:
- Earning $15,000 salary = pay $5,175 tax (34.5% bracket) = net $9,825
- Receiving $15,000 FHOG = $0 tax = net $15,000
- Equivalent to earning $23,000 in pre-tax income
Future Changes and Policy Updates
First Home Buyer Grant amounts and eligibility change regularly based on:
- State budgets (reviewed annually)
- Housing market conditions
- Government policy shifts
Recent changes (2020-2025):
- VIC: Removed FHOG for metro Melbourne (2021)
- ACT: Suspended FHOG, transitioning to no-stamp-duty model
- QLD: Increased regional grant from $15K to $30K (2024)
- TAS: Increased grant to $30K (2023)
Stay updated:
- Check your state revenue office website before purchasing
- Speak to conveyancer about current rules
- Confirm eligibility before signing contracts
Final Thoughts
The First Home Buyer Grant is free money (typically $10,000-$30,000) that can significantly reduce your deposit burden or loan amount—but only if you understand and meet the eligibility requirements.
Key takeaways:
- Only for new/substantially renovated homes (in most states)
- One-time benefit: You can only claim it once
- Residency requirement: Must live in property for 6-12 months
- Stacks with other benefits: Stamp duty exemptions, First Home Guarantee
- State-specific: Rules vary significantly by state
Best outcomes:
- QLD regional buyer: $30,000 grant + stamp duty saving = $45,000+ total benefit
- VIC regional buyer: $10,000 grant + stamp duty saving = $30,000-$40,000 total
- NSW buyer: $10,000 grant + stamp duty saving = $30,000-$40,000 total
Before purchasing:
- Verify current grant amounts and eligibility for your state
- Ensure property qualifies as "new home"
- Check price caps
- Confirm you meet occupancy requirements
- Apply within required timeframe
- Consider combining with First Home Guarantee (avoid LMI)
Speak to a NIK Finance broker who can:
- Confirm your eligibility for FHOG and other benefits
- Calculate total upfront cost savings
- Structure your loan to maximize benefits
- Connect you with conveyancers experienced in FHOG applications
- Help you find lenders supporting First Home Guarantee + FHOG combination
The difference:
- Buying without FHOG: $580,000 property, $58,000 deposit needed, $522,000 loan + $18,000 LMI
- Buying with FHOG: Same property, $58,000 deposit, $507,000 loan + $0 LMI
- Savings: $15,000 grant + $18,000 LMI = $33,000 total
For first home buyers purchasing new properties, the FHOG combined with other government schemes can save $30,000-$50,000 in upfront costs—accelerating your entry into the property market by 1-2 years.