First Home Buyer Schemes in Australia 2026: What Actually Helps (and What Doesn't)

Part 8 of the Property Investment Gotchas 101 series.

The Big Three Schemes

1. First Home Owner Grant (FHOG)

A one-off government grant for eligible first home buyers. Sounds great — but the rules are tight:

The trap: In most states, FHOG only applies to new builds — not established homes. If you’re buying an existing house (which is what most first-timers actually do), the grant doesn’t apply. Queensland and Tasmania are more generous, but check the current rules — they change regularly.

2. Stamp Duty Concessions

This is where the real savings are. Stamp duty on a $650,000 place can be $16,000–$35,000, so getting a concession or full exemption is a big deal:

The trap: These concessions almost always require you to live in the property — typically for 6–12 months. Buying as an investment property? The concession won’t apply. And thresholds haven’t kept pace with prices in some states — $430,000 in WA doesn’t buy you much anymore.

3. Australian Government 5% Deposit Scheme (Federal)

Formerly called the Home Guarantee Scheme, now rebranded as the Australian Government 5% Deposit Scheme. It lets eligible buyers purchase with as little as 5% deposit (2% for single parents under the Family Home Guarantee) without paying LMI. The government guarantees the difference up to 20%.

Key changes as of 2025: the scheme has been expanded — income caps have been removed, and eligibility now extends beyond first-time buyers. Property price caps still apply by area, and places are allocated annually. Check firsthomebuyers.gov.au for current caps and eligibility.

The trap: You’re still borrowing 95% of the property’s value. If the market dips even 5%, you’re in negative equity — you owe more than the place is worth. And the LMI you “saved” was protecting the bank, not you. You haven’t actually reduced your risk.

FHB Schemes vs Investment — Know the Difference

Most first home buyer benefits require you to live in the property. If your plan is to buy as an investment and rent it out, most of these schemes won’t help:

• FHOG: Must live in the property for at least 6–12 months (varies by state)
• Stamp duty concessions: Owner-occupied purchases only
• Home Guarantee Scheme: Must be owner-occupied (now called the 5% Deposit Scheme)

Some first-timers buy, live in it for 12 months to claim the benefits, then rent it out and move on. Not illegal — but you need to genuinely live there for the required period. The ATO and state revenue offices do check.

If you’re going straight to investment property, skip to the strategies guide and the hidden costs breakdown — different game entirely.

Shared Equity Schemes

Several states have introduced shared equity programs where the government co-owns a portion of the property:

• Victoria’s Victorian Homebuyer Fund: Government contributes up to 25% (40% for Aboriginal/Torres Strait Islander buyers). You only need a 5% deposit and don’t pay the government’s share until you sell.
• WA’s Keystart: Low-deposit loans without LMI. Income and property price caps apply.

The trap: When you sell, you owe the government their share of any capital growth — not just their original contribution. If your property doubles in value, the government takes their percentage of the new value. It’s free money now, but it costs you on the other end.

The First Home Super Saver Scheme (FHSSS)

The FHSSS lets you salary-sacrifice extra contributions into your super fund, then withdraw them (plus earnings at a deemed rate) to put towards your first home deposit.

• Max voluntary contributions: $15,000/year, up to $50,000 total
• Tax saving: Contributions are taxed at 15% in super vs your marginal rate (30%+ for most people)
• Withdrawal: Apply through the ATO after you’ve got a contract

The trap: The “earnings” are calculated at a deemed rate (SIC rate) — not your actual super fund returns. And the process takes time — ATO processing can take weeks, and you need to factor that into your settlement timeline.

NZ Doesn’t Have These (Mostly)

Kiwis reading this: NZ’s first home buyer support looks quite different. There’s KiwiSaver withdrawal, the First Home Grant (income and price caps), and Kāinga Ora lending — but no stamp duty concessions (because there’s no stamp duty) and no equivalent of the Home Guarantee Scheme. The New Zealand vs Australia comparison covers the full picture.

The Document Stack

Applying for first home buyer schemes means extra paperwork on top of a normal purchase:

• FHOG application and eligibility statutory declarations
• Stamp duty exemption/concession application (state revenue office)
• Home Guarantee Scheme eligibility confirmation (participating lender via firsthomebuyers.gov.au)
• FHSSS release request (ATO) if using super savings
• Proof of identity, income, and first-time buyer status

All on top of the regular purchase docs — agreement, loan, inspection, insurance, settlement. For the full document rundown, see our document types guide.

Once you’ve bought, you still need to track your occupancy period (for scheme compliance) and all the costs that’ll feed into your future CGT calculation if you eventually turn it into a rental. AI document management keeps everything in one place from day one.

The Short Version

1. FHOG is mostly for new builds — established home buyers miss out in most states
2. Stamp duty concessions are the real prize, but you must live in the property
3. 5% deposit schemes get you in faster but leave you with almost no buffer
4. Shared equity is cheap now but costs you a share of capital growth later
5. Most FHB benefits don’t apply to investment properties — you need to live there first
6. QLD and TAS are the most generous states right now; WA price caps are behind the market

Next up: SMSF Property: Buying With Your Super