Buying your first home in Australia in 2026 comes with the most generous suite of government support in recent years — grants, loan guarantees, stamp duty exemptions and shared equity schemes that together could save you $40,000 to $75,000 or more depending on your state. The federal First Home Guarantee was massively expanded from 1 October 2025 with no income caps and no place limits. The Help to Buy shared equity scheme launched on 5 December 2025. And state-level grants continue alongside both. The key is knowing what you’re eligible for, how the schemes interact, and how to structure your application to stack them correctly.
The four layers of first home buyer support
First home buyers in Australia can access support through four main channels — and many of them can be combined:
- First Home Owner Grant (FHOG) — a one-off cash payment from your state or territory government, primarily for new builds
- First Home Guarantee (FHBG) — a federal guarantee enabling a 5% deposit with no Lenders Mortgage Insurance (LMI)
- Stamp duty concessions — state-level exemptions or reductions on transfer duty for first purchases
- Help to Buy — a new federal shared equity scheme reducing the amount you need to borrow (launched December 2025)
Additionally: the First Home Super Saver Scheme (FHSS) lets you save for your deposit inside superannuation at a lower tax rate — withdrawing up to $50,000 for your first home deposit.
First Home Guarantee — the most important scheme for most buyers
The First Home Guarantee (FHBG), administered by Housing Australia, allows eligible first home buyers to purchase with a deposit as low as 5% without paying Lenders Mortgage Insurance. The federal government guarantees the shortfall (up to 15% of the property value) to the lender — you still own 100% of the home.
What changed from 1 October 2025:
- No annual place cap — previously limited to 35,000 places per year
- No income cap — previously $125,000 for singles and $200,000 for couples
- Sydney property price cap raised to $1,500,000 (from $900,000)
LMI for a $700,000 property with a 5% deposit would typically cost $17,000–$22,000. The First Home Guarantee eliminates this entirely. Over 248,000 first home buyers have used this scheme since its launch. You apply through a participating lender — you cannot apply directly to Housing Australia.
Find out which first home buyer schemes you qualify for
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Help to Buy — the new shared equity scheme (December 2025)
Help to Buy is the federal government’s brand-new shared equity program, which launched on 5 December 2025. Unlike the First Home Guarantee, Help to Buy involves the government contributing to the purchase price and becoming a co-owner of your home.
- Government contributes up to 40% of the purchase price for new builds, or 30% for existing homes
- You need as little as a 2% deposit
- The government’s equity share is interest-free
- Income cap: $100,000 single / $160,000 couple
- Currently available through Commonwealth Bank and Bank Australia — more lenders joining in 2026
- You can buy back the government’s share over time through voluntary payments
Critical choice: You cannot use Help to Buy and the First Home Guarantee at the same time — choose one. Help to Buy suits lower-income earners who want the smallest possible upfront cost. The First Home Guarantee suits those who want to own 100% of their home from day one.
State by state — FHOG and stamp duty concessions 2026
| State | FHOG grant | Stamp duty full exemption | Key notes |
|---|---|---|---|
| NSW | $10,000 (new homes ≤$600K) | Under $800,000 | Concession $800K–$1M. Sydney FHBG cap: $1.5M |
| VIC | $10,000 (new homes ≤$750K) | Under $600,000 | Concession $600K–$750K. Off-the-plan concession until Oct 2026 |
| QLD | $30,000 (new homes ≤$750K, until 30 June 2026) | Full concession up to $700K | Most generous state. Combined saving up to $55,778 |
| WA | $10,000 | Under $430,000; concession to $530K | Established home exemption up to $400K |
| SA | $15,000 (no price cap since June 2024) | SA Shared Equity via HomeStart | Government contributes up to 25% of purchase price |
| TAS | $10,000 | 50% duty concession on established homes | Check current eligibility dates |
| ACT | No FHOG (replaced by HBCS) | Home Buyer Concession Scheme stamp duty relief | FHOG replaced by duty concession from July 2019 |
| NT | $10,000 | Under $650,000 | First Home Owner Discount available |
First Home Super Saver Scheme (FHSS)
The FHSS lets you save for your deposit inside superannuation, where contributions are taxed at 15% — far less than your marginal income tax rate:
- Voluntary contributions up to $15,000 per financial year
- Withdraw a total of up to $50,000 for your deposit
- On a $100,000 salary, salary-sacrificing $15,000/year saves roughly $5,100 in tax versus a regular bank account
- Over 3 years: $15,000+ in tax savings on top of a $45,000 deposit
- Funds take 15–25 business days to arrive after release request — plan this into your contract timeline
Queensland example — best-case stacking 2026
A first home buyer in Queensland purchasing a $500,000 new home with a 5% deposit can access:
- QLD FHOG: $30,000
- Stamp duty exemption: $8,750 saved
- LMI saving via First Home Guarantee: ~$17,028 saved
- Total combined benefit: ~$55,778
Common mistakes to avoid
- Stacking Help to Buy with First Home Guarantee: not possible — choose one or the other
- The spouse rule: if your partner has previously owned property in Australia, you may be ineligible for the FHOG and stamp duty exemption — even if they’re not on the title
- Going just over the price cap: buying at $601,000 instead of $599,000 in Victoria loses a full stamp duty exemption worth up to $31,000
- Forgetting FHSS timing: the 15–25 business day processing time means the release request must happen before you sign your contract
- Not moving in within 12 months: all major schemes require you to occupy as your principal place of residence within 12 months — failure means repaying grants and concessions
Frequently asked questions
What is the First Home Guarantee and how does it work in 2026?
The First Home Guarantee allows eligible first home buyers to purchase with a 5% deposit without paying LMI. The federal government guarantees up to 15% of the property value. From 1 October 2025: no income caps, no annual place limit, Sydney price cap raised to $1,500,000. Apply through a participating lender — not directly to Housing Australia.
What is the difference between the First Home Guarantee and Help to Buy?
First Home Guarantee: loan guarantee — you own 100% from day one, need 5% deposit. Help to Buy: shared equity — government owns up to 40%, you need only 2% deposit. Cannot use both simultaneously. Help to Buy better for lower incomes; First Home Guarantee better for those who want full ownership.
Which state has the most generous first home buyer grants in 2026?
Queensland. An eligible buyer purchasing a $500,000 new home with a 5% deposit can access approximately $55,778 in combined benefits: $30,000 FHOG (until 30 June 2026), $8,750 stamp duty saving, and $17,028 LMI saving via the First Home Guarantee.
Can I use the First Home Guarantee if I earn over $125,000?
Yes — from 1 October 2025, the income cap was removed entirely. Any Australian citizen or permanent resident buying a home to live in can apply for the First Home Guarantee regardless of income. This is a major expansion from the previous $125,000 (singles) and $200,000 (couples) limits.
What is the First Home Super Saver Scheme and how much can I withdraw?
The FHSS lets you save for a deposit inside superannuation at 15% tax rate rather than your marginal rate. You can contribute up to $15,000 per financial year and withdraw a total of up to $50,000 for your first home deposit. On a $100,000 salary, this saves roughly $5,100 in tax per year compared to saving in a bank account.
Do first home buyer grants apply to established homes or only new builds?
The FHOG cash grant in most states applies only to new or substantially renovated homes. However, stamp duty exemptions typically apply to both new and established homes. The First Home Guarantee and Help to Buy both apply to established homes. So if you buy an established property, you can still benefit from stamp duty savings and the federal schemes — just not the FHOG grant.
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