What are First Time Buyer Resources for Solicitors?

What Resources Apply to First Home Buyers in Australia?

First home buyers in Australia can access the Australian Government 5% Deposit Scheme, state and territory grants, and stamp duty concessions that vary by jurisdiction. Eligible first home buyers can purchase with a 5% deposit under the Australian Government 5% Deposit Scheme operative from 1 October 2025. Housing Australia guarantees the difference between the deposit and 20% of the property value, with no income caps and no annual place limits. Each state and territory administers separate grants and duty relief programs with distinct eligibility criteria, property value caps and residency requirements.

Consider a solicitor purchasing in Sydney for the first time. They identify a property under the New South Wales cap and apply through a participating lender panel. The deposit required is 5% of the property value. No lenders mortgage insurance is payable because Housing Australia provides the guarantee. The buyer can also access New South Wales stamp duty relief if the property meets the value threshold and occupancy conditions. For contracts entered into on or after 1 July 2023, a full transfer duty exemption applies on new and existing homes valued up to $800,000, with a sliding concession on properties between $800,001 and $1,000,000. The schemes operate independently but can be combined in most cases.

How Do Property Price Caps Work Under the 5% Deposit Scheme?

Property price caps from 1 October 2025 vary by state and territory under the Australian Government 5% Deposit Scheme. New South Wales caps are $1,500,000 for capital city and regional centres and $800,000 for other areas; Victoria caps are $950,000 for capital city and regional centres and $650,000 for other areas; Queensland caps are $1,000,000 for capital city and regional centres and $700,000 for other areas. Both the purchase price and the lender's assessed value of the home must be at or below the applicable cap.

A solicitor purchasing in regional Victoria needs to confirm whether the property location falls under the $950,000 regional centres cap or the $650,000 other areas cap. Housing Australia publishes a postcode search tool at firsthomebuyers.gov.au that determines the applicable cap for each location. The participating lender will verify both the contract price and the valuation meet the cap before processing the application. If the valuation comes in below the purchase price but still within the cap, the lower figure determines the maximum loan amount.

What Stamp Duty Concessions Apply in Queensland?

For contracts signed on or after 9 June 2024 in Queensland, the maximum first home concession deduction on established homes is $17,350 for properties valued up to $709,999, phasing out in $10,000 property value bands and reaching nil for properties valued at $800,000 or more. A full transfer duty concession with no price cap applies to new homes and vacant land for contracts signed on or after 1 May 2025. For agreements entered into on or after 1 August 2026, at least one applicant must be an Australian citizen, permanent resident or specified foreign retiree.

Duty is not eliminated entirely on established homes in Queensland. The first home concession amount is deducted from the standard home concession rate. A solicitor advising a buyer on an established home valued at $700,000 would calculate duty at the concessional rate and deduct $17,350. A buyer purchasing a new home or vacant land under the first home new home concession or first home vacant land concession pays no transfer duty on the residential land component regardless of the property value, provided the citizenship or residency requirement is met and other eligibility criteria are satisfied.

How Does Western Australia's First Home Owner Rate Apply from May 2026?

From 7 May 2026, the geographic distinction between the Perth Metropolitan and Peel regions and areas outside those regions was removed for the first home owner rate in Western Australia, with a single statewide threshold now applying to all transactions regardless of location. No duty is payable on homes valued up to $600,000, with a concessional rate applying on homes valued between $600,001 and $800,000 at a rate of $16.15 for every $100 or part thereof above $600,000. For vacant land, no duty is payable on land valued up to $450,000, with a concessional rate applying on land valued between $450,001 and $550,000 at a rate of $20.14 for every $100 or part thereof above $450,000.

A solicitor purchasing in Broome or Geraldton applies the same thresholds as a buyer in Perth. The removal of the regional distinction simplifies eligibility assessment and eliminates the need to determine whether a property falls within the Perth Metropolitan or Peel local government areas. The link between the first home owner grant value cap and eligibility for the first home owner rate has also been removed. A buyer can access a duty concession on transactions that exceed the grant value cap, provided the property value remains within the duty concession thresholds.

What Eligibility Conditions Apply to the First Home Super Saver Scheme?

The First Home Super Saver Scheme allows first home buyers to make voluntary concessional and non-concessional contributions into their superannuation fund and apply to release eligible amounts toward a home deposit, with up to $15,000 of personal contributions from any one financial year able to be released and a total cap of $50,000. Concessional contributions are taxed at 15% rather than at marginal income tax rates. Buyers generally need to obtain a determination from the ATO before signing a purchase contract.

A solicitor earning income at a marginal rate above 15% can reduce the tax payable on contributions by making concessional contributions within the annual cap. The released amount is then added to assessable income and taxed at marginal rates less a 30% offset. The net tax benefit depends on the individual's marginal rate and the timing of contributions. The determination process requires lodging an application with the ATO, receiving confirmation of the releasable amount, and then requesting release once a contract is signed or construction commences. Buyers who obtain a determination but do not proceed with a purchase can recontribute the released amount to superannuation or retain it, but the recontribution does not restore eligibility to release those funds again under the scheme.

Can the 5% Deposit Scheme Be Combined with State Grants?

The Australian Government 5% Deposit Scheme cannot be combined with Help to Buy. State and territory grants and stamp duty concessions can generally be used alongside the scheme. Buyers should confirm compatibility with their participating lender and the relevant state or territory revenue authority before lodging applications.

A solicitor in Brisbane purchasing a new home under the Queensland first home owner grant can apply for both the grant and the 5% Deposit Scheme in the same transaction. The Queensland grant provides $15,000 for new homes valued under $750,000 for contracts signed from 1 July 2026. The 5% Deposit Scheme reduces the deposit required and eliminates lenders mortgage insurance. The Queensland first home new home concession removes transfer duty on the residential land component. Each program operates under separate legislation and is administered by a different authority, but the eligibility criteria do not prohibit concurrent use. Buyers using Help to Buy cannot access the 5% Deposit Scheme in the same transaction because both programs involve a guarantee or equity contribution mechanism that lenders cannot layer.

What Application Process Applies Under the 5% Deposit Scheme?

Applications are made through a participating lender panel and cannot be made directly to Housing Australia. Fixed rate, variable rate and split loan structures may be available depending on the participating lender. Buyers must meet the lender's credit criteria and the scheme's eligibility conditions. The lender arranges the Housing Australia guarantee as part of the loan approval process.

A solicitor applying for pre-approval under the scheme contacts a participating lender or broker who works with the participating panel. The lender assesses income, employment, liabilities and credit history in the same manner as any home loan application. If the buyer meets the lender's serviceability requirements and the scheme's eligibility criteria, the lender proceeds with conditional approval. Once the buyer identifies a property within the applicable price cap, the lender orders a valuation. If the valuation confirms the property value is at or below the cap, the lender finalises approval and arranges the Housing Australia guarantee. The buyer is not required to pay lenders mortgage insurance because the guarantee covers the difference between the deposit and 20% equity.

How Do ACT Concessions Apply from July 2026?

From 1 July 2026 in the Australian Capital Territory, eligible buyers are fully exempt from conveyance duty regardless of the value of the property purchased and regardless of household income, with the property value limit and income threshold that applied to transactions before 1 July 2026 both removed. Buyers must be individuals aged 18 or over, must not have a relevant prior property interest, and must own and occupy the property as their principal place of residence continuously for a minimum of one year commencing within 12 months of settlement.

A solicitor purchasing in Canberra after 1 July 2026 pays no conveyance duty on the purchase regardless of property value, provided the occupancy and prior ownership conditions are met. The removal of the income threshold means buyers with high incomes are not excluded. The removal of the property value limit means buyers purchasing above the previous $1,020,000 threshold can access the full exemption. The buyer must occupy the property as their principal place of residence for at least one year starting within 12 months of settlement. If the buyer fails to meet the occupancy requirement, duty may be clawed back.

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