First home buyer grants in Australia 2025
Buying a first home in Australia remains challenging in 2025 due to high property prices and rising living costs. However, government support programs still provide significant financial assistance for eligible first time buyers. These schemes can reduce upfront costs by AUD 10,000 to AUD 40,000 depending on the state, income and property type.
The two main types of support are:
- First Home Owner Grant (FHOG)
- Stamp duty concessions or exemptions
Some states also offer additional top up grants or shared equity schemes to help lower deposit requirements.
Why the grants continue in 2025
According to federal housing policy updates, rates of first home ownership in people aged 25–34 remain below long term averages. Government programs are being maintained to support market entry and address affordability challenges.
Lower inflation and interest rate expectations have also led to increased buyer activity which makes government support more relevant.
How much can you receive?
Grant amounts vary by state. The most common base grant is AUD 10,000 for newly built or substantially renovated homes. Stamp duty relief can provide much larger savings depending on property value.
| State | Grant Amount | Stamp Duty Relief |
|---|---|---|
| NSW | AUD 10,000 | Up to full exemption under thresholds |
| VIC | AUD 10,000 | Up to full exemption for eligible buyers |
| QLD | AUD 15,000 | Discounts based on value |
| WA | AUD 10,000 | Concessions available |
| SA | AUD 15,000 | No stamp duty relief in most cases |
| TAS | AUD 30,000 (temporary boost) | Concessions for new builds |
| ACT | No cash grant | Full stamp duty exemption |
| NT | AUD 10,000 | Concessions for new homes |
Eligibility requirements
- Must be purchasing a first home
- Must be an Australian citizen or permanent resident
- Must live in the property as primary residence
- Must meet property value limits
- Must meet occupancy period rules
Income limits apply for some schemes especially shared equity programs.
Property value limits in 2025
States set maximum property values for grant eligibility. For example:
- NSW: AUD 800,000 for new homes
- VIC: AUD 750,000
- QLD: AUD 700,000
Higher thresholds may apply for regional areas or house and land packages.
Shared equity schemes
Several states offer shared equity programs where the government contributes up to 40 percent of the purchase price. Buyers repay the share when selling or refinancing. These programs reduce deposit requirements and borrowing costs.
Example savings
Purchase price: AUD 650,000 Grant: AUD 10,000 Stamp duty: AUD 24,000 (exempt under program) Total savings: AUD 34,000
This level of support can make a significant difference for first time buyers with limited savings.
Do you still need a deposit?
Most lenders require a minimum deposit, although government equity participation or lender guarantees can reduce this requirement.
How to apply
Most applications are submitted through the lending institution during the loan process. Approval timing varies but grants are usually applied at settlement.
Risks and considerations
- Property value limits may restrict choice
- Construction delays for new builds
- Long term mortgage commitment
- Shared equity repayment obligations
Bottom line
First home buyer grants in Australia remain a valuable source of support in 2025. With rising living costs and affordability pressures, these programs can reduce initial purchase expenses and improve access to home ownership.
Buyers should compare total costs, lending conditions and eligibility rules carefully before making a decision.
This article is general information only and does not constitute financial, investment, legal, or tax advice. It does not consider your objectives, financial situation, or needs. You may wish to seek personalised advice from a licensed professional before making financial decisions.