Buying your first home is an exciting milestone, but it can also be a daunting financial challenge. Fortunately, the federal government offers a range of initiatives to support first-time home buyers. These initiatives are designed to make homeownership more accessible and affordable. The following media piece provides a detailed guide to these initiatives, how they work, and how you can benefit from them. This comprehensive article will cover national and state-specific schemes.

National Initiatives for First Home Buyers

1. First Home Loan Deposit Scheme (FHLDS)

The First Home Loan Deposit Scheme (FHLDS) is a federal government initiative designed to help first-time buyers purchase a home sooner. Under the FHLDS, eligible buyers can purchase a property with a deposit as low as 5%, without needing to pay for Lenders Mortgage Insurance (LMI). The government guarantees up to 15% of the property’s value, allowing buyers to avoid the additional cost of LMI.

Benefits:

• Lower deposit requirement (as low as 5%).
• No Lenders Mortgage Insurance (LMI) required.
• Faster access to the property market.

Eligibility:

• Australian citizens aged 18 or over.
• First home buyers.
• Singles earning up to $125,000 per year or couples earning up to $200,000 per year.
• Property price thresholds apply and vary by location.

For more information, visit the National Housing Finance and Investment Corporation (NHFIC) at https://www.nhfic.gov.au/what-we-do/fhlds/.

2. First Home Super Saver Scheme (FHSSS)

The First Home Super Saver Scheme (FHSSS) allows first-time buyers to save for a home deposit using their superannuation fund. Under this scheme, individuals can make voluntary contributions to their superannuation, which can later be withdrawn for a home deposit. The scheme offers tax advantages, as superannuation contributions are taxed at a lower rate than regular income.

Benefits:

• Tax-effective way to save for a home deposit.
• Potential for higher savings due to superannuation fund returns.
• Ability to withdraw voluntary contributions and associated earnings.

Eligibility:

• Australian citizens aged 18 or over.
• First home buyers.
• Must live in the property for at least six months within the first 12 months of purchase.

For more information, visit the Australian Taxation Office (ATO) at https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-using-your-super/First-Home-Super-Saver-Scheme/

3. HomeBuilder Grant

The HomeBuilder Grant is a federal government initiative aimed at supporting the residential construction market. It provides eligible first-time home buyers with a grant to build a new home or substantially renovate an existing one. Although the HomeBuilder Grant has ended for new applications, it remains a notable mention for recent first-time buyers who may have benefited from it.

Benefits:

• Financial support for building a new home or substantial renovations.
• Stimulates the construction industry and creates jobs.

Eligibility:

• Australian citizens aged 18 or over.
• Singles earning up to $125,000 per year or couples earning up to $200,000 per year.
• Building contracts signed between June 4, 2020, and March 31, 2021.

For more information, visit the Australian Government Treasury at https://treasury.gov.au/coronavirus/homebuilder

State and Territory-Specific Initiatives

New South Wales (NSW)

1. First Home Owner Grant (New Homes) Scheme

The First Home Owner Grant (New Homes) Scheme in NSW offers a grant of $10,000 for first home buyers purchasing a new home or building their first home. The grant applies to new homes valued up to $600,000 or homes with land valued up to $750,000.

Benefits:

• $10,000 grant for eligible new homes.
• Assistance with building or purchasing a new home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit Revenue NSW at https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/new-homes

2. First Home Buyers Assistance Scheme

This scheme provides exemptions or concessions on transfer duty (stamp duty) for eligible first home buyers in NSW. Full exemptions are available for homes valued up to $800,000 and concessions for homes valued between $800,000 and $1,00,000.

Benefits:

• Stamp duty exemptions and concessions.
• Reduced upfront costs for purchasing a home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit Revenue NSW at https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/assistance-scheme

Victoria

1. First Home Owner Grant (FHOG)

In Victoria, eligible first home buyers can receive a grant of $10,000 for purchasing or building a new home in metropolitan areas and $20,000 in regional areas. The grant applies to new homes valued up to $750,000.

Benefits:

• $10,000 grant for metropolitan areas.
• $20,000 grant for regional areas.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least 12 months.

For more information, visit the State Revenue Office Victoria at https://www.sro.vic.gov.au/first-home-owner

2. First Home Buyer Duty Exemption or Concession

First home buyers in Victoria may be eligible for a full exemption from stamp duty for homes valued up to $600,000, and a concession for homes valued between $600,001 and $750,000.

Benefits:

• Stamp duty exemptions and concessions.
• Reduced upfront costs for purchasing a home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least 12 months.

For more information, visit the State Revenue Office Victoria at https://www.sro.vic.gov.au/fhbd

Queensland

1. First Home Owner Grant (FHOG)

The Queensland FHOG offers a $15,000 grant for first home buyers purchasing or building a new home valued up to $750,000.

Benefits:

• $15,000 grant for eligible new homes.
• Assistance with building or purchasing a new home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit the [Queensland Government at https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant

2. First Home Concession

First home buyers in Queensland may be eligible for a concession on transfer duty for homes valued up to $550,000. Additional concessions apply for vacant land valued up to $400,000.

Benefits:

• Stamp duty concessions.
• Reduced upfront costs for purchasing a home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least 12 months.

For more information, visit the Queensland Government at https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/first-home-concession

Western Australia

1. First Home Owner Grant (FHOG)

The WA FHOG offers a $10,000 grant for first home buyers purchasing or building a new home valued up to $750,000 south of the 26th parallel, and up to $1,000,000 north of the 26th parallel.

Benefits:

• $10,000 grant for eligible new homes.
• Assistance with building or purchasing a new home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit the WA Government at https://www.wa.gov.au/organisation/department-of-finance/fhog

2. First Home Buyer Duty Concession

First home buyers in WA may be eligible for a concession on transfer duty for homes valued up to $530,000 and vacant land up to $400,000.

Benefits:

• Stamp duty concessions.
• Reduced upfront costs for purchasing a home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit the WA Government at https://www.wa.gov.au/organisation/department-of-finance/duty-concessions-first-home-buyers

South Australia

1. First Home Owner Grant (FHOG)

The South Australian FHOG offers a $15,000 grant for first home buyers purchasing or building a new home valued up to $575,000.

Benefits:

• $15,000 grant for eligible new homes.
• Assistance with building or purchasing a new home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit Revenue SA at https://www.revenuesa.sa.gov.au/grants-and-concessions/first-home-owners

Tasmania

1. First Home Owner Grant (FHOG)

Tasmania offers a $30,000 grant for first home buyers purchasing or building a new home. The grant applies to new homes only.

Benefits:

• $30,000 grant for eligible new homes.
• Assistance with building or purchasing a new home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit the State Revenue Office Tasmania at https://www.sro.tas.gov.au/first-home-owner

2. First Home Buyer Duty Concession

First home buyers in Tasmania may be eligible for a 50% discount on transfer duty for established homes valued up to $600,000.

Benefits:

• Stamp duty concessions.
• Reduced upfront costs for purchasing a home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit the State Revenue Office Tasmania at https://www.sro.tas.gov.au/first-home-owner

Australian Capital Territory (ACT)

1. Home Buyer Concession Scheme

The ACT offers a full stamp duty exemption for first home buyers purchasing a new or established home, with no cap on the property value. The scheme aims to make homeownership more accessible by reducing upfront costs.

Benefits:

• Full stamp duty exemption.
• Reduced upfront costs for purchasing a home.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least 12 months.

For more information, visit the ACT Revenue Office at https://www.revenue.act.gov.au/home-buyer-assistance/first-home-owner-grant

Northern Territory

1. First Home Owner Grant (FHOG)

The Northern Territory FHOG offers a $10,000 grant for first home buyers purchasing or building a new home. Additionally, a household goods grant of up to $2,000 is available to help furnish the new home.

Benefits:

• $10,000 grant for eligible new homes.
• $2,000 household goods grant.

Eligibility:

• Australian citizens or permanent residents.
• First home buyers.
• Must live in the home for at least six months within the first 12 months.

For more information, visit the NT Government at https://nt.gov.au/property/home-owner-assistance/first-home-owner-grant

Easing the pathway to ownership

Navigating the various first home buyer initiatives offered by the Australian government can significantly ease the financial burden of purchasing your first home. By taking advantage of federal and state-specific grants, concessions, and schemes tailored to support first-time buyers, you can make your dream of homeownership a reality. Remember to research the specific requirements and benefits applicable to your state or territory, and seek professional advice if needed.

At Kitty & Miles Personal Buyers Agents, we are dedicated to helping first-time buyers navigate the complexities of the property market. Our team of experienced buyers advocates and property buyers agents are here to provide personalized guidance and support throughout your home buying journey. Contact us today on support@kittyandmiles.com.au to learn more about how we can assist you in achieving your property ownership goals.