You've done the sums, you have some savings, and you're wondering whether the government schemes you keep hearing about are actually worth anything, or whether the fine print will rule you out. That's a reasonable question. The answer is that several of these schemes are genuinely useful, they can stack together, and the rules have changed materially in the last year. Here is what's on the table.
The First Home Guarantee: Government Backs Your Loan, Not Your Deposit
The First Home Guarantee (administered by Housing Australia) lets eligible buyers purchase with a 5% deposit without paying Lenders Mortgage Insurance (LMI). Housing Australia issues a guarantee to your participating lender covering the loan amount between 80% and 95% of the property value. The guarantee protects the lender, not you. It is not cash in your pocket and does not replace standard loan checks.
The scheme expanded significantly from 1 October 2025. Income caps were removed entirely (previously $125,000 for singles and $200,000 for couples), annual place limits were abolished so every eligible applicant can access the scheme, property price caps were increased across all states and territories, and the separate Regional First Home Buyer Guarantee was absorbed into the main scheme.
To qualify, you must be an Australian citizen or permanent resident aged 18 or over, a first home buyer (or not have owned property in Australia with limited exceptions for re-entry buyers), buy as an owner-occupier and move in within an eligible timeframe, buy a property within the relevant price cap for the region, and have at least 5% genuine savings.
Price caps vary significantly by location. The headline caps from October 2025 include Sydney and NSW regional centres at $1,500,000, Brisbane and Queensland regional centres at $1,000,000, Melbourne and Geelong at $950,000, and Perth at $850,000. Because cap classifications affect your maximum purchase price by tens of thousands, confirm the live cap at housingaustralia.gov.au for the specific suburb you are targeting before signing a contract.
The Family Home Guarantee is a related stream: it allows eligible single parents or guardians to buy with as little as 2% deposit.
The First Home Guarantee removes the LMI cost, which can run to $20,000, $35,000 on a typical purchase. It does not reduce the size of your loan or your ongoing repayments.
The First Home Super Saver Scheme: Saving Inside Super
The First Home Super Saver (FHSS) scheme is administered by the ATO. It lets you make voluntary concessional (before-tax) or non-concessional (after-tax) contributions to your superannuation fund and then request a release of those amounts when you're ready to buy.
You can contribute up to $15,000 per year and $50,000 in total. When you're ready to buy, you can apply to withdraw your savings plus associated earnings and use them towards your first home deposit. If buying with a partner who also qualifies, you can each access up to $50,000, a combined $100,000, from your respective super funds.
The tax advantage is real. Because super is taxed at 15% rather than your marginal income tax rate, the FHSS scheme can meaningfully accelerate your deposit savings. The ATO will withhold tax based on your usual tax rate minus a 30% tax offset, or a flat rate of 17% if your usual rate can't be determined.
The mechanics matter here:
- Make eligible voluntary contributions within the annual $15,000 FHSS limit (noting these sit inside, not separate from, your normal concessional cap of $30,000 per year as at FY2025-26, per ato.gov.au).
- Apply to the ATO for a determination before you sign a contract to buy or build your first home.
- Submit a release request. Once you receive an FHSS release, you have 12 months (extendable to 24 months) to sign a purchase contract.
The FHSS scheme is only for purchasing your first home to live in and cannot be used to buy an investment property. The property you purchase must be one you will live in for at least six months within the first 12 months of ownership. Your employer's regular super guarantee contributions are not included in your FHSS withdrawal amount. Only your voluntary contributions, like salary sacrifice or after-tax contributions, are eligible to be released under the scheme.
The FHSS scheme and the First Home Guarantee operate independently and can be used together.
State-Based Cash Grants and Stamp Duty Concessions
On top of the federal schemes, each state and territory runs its own First Home Owner Grant (FHOG), a one-off tax-free cash payment. Because each state manages the FHOG independently, first home buyer grant amounts, property price caps, and eligible property types vary considerably depending on where you buy.
In 2025-26, the FHOG ranges from $10,000 in NSW, VIC and WA, to $15,000 in SA, $30,000 in QLD and Tasmania, and as high as $50,000 in the Northern Territory for eligible new home builds. The ACT is the exception: the ACT does not offer a direct cash grant but provides eligible buyers with a stamp duty exemption through the Home Buyer Concession Scheme.
Two state deadlines worth noting: Queensland doubled its first home owner grant in November 2023 to $30,000, but the grant is set to revert to $15,000 from 1 July 2026. Tasmania's first home buyer duty relief (100% transfer duty exemption) also expires 30 June 2026. Always verify current amounts and cut-off dates with your state revenue office before relying on these figures.
Important: all FHOG grants apply to new homes only. You cannot receive the FHOG for purchasing an existing (established) property. Stamp duty concessions, however, often cover both new and established homes, though the thresholds differ.
A Worked Scenario
Consider a couple in Queensland purchasing a new house-and-land package for $650,000 in the 2025-26 financial year.
- First Home Guarantee: They meet the post-October 2025 eligibility rules (no income cap, no place cap) and the property sits under the Queensland price cap. With a 5% deposit of $32,500, they avoid LMI. LMI on a 95% loan at this price would typically run to around $20,000 or more, depending on the lender.
- FHSS: Each partner has been salary-sacrificing $15,000 per year for two years. Each has $30,000 in eligible FHSS contributions (within the $50,000 lifetime cap). After the ATO applies earnings and withholds tax with the 30% offset, they each receive a net amount and combine these toward the 5% deposit requirement.
- FHOG: As a new build valued under $750,000, the property qualifies for the Queensland FHOG of $30,000 (for contracts signed before 30 June 2026, per the Queensland Revenue Office at qro.qld.gov.au).
- Stamp duty: The Queensland government waives stamp duty for all first home buyers entering into a contract to purchase a new-built home to live in, regardless of the value of the home.
This is an illustrative scenario only, not a projection. Actual outcomes depend on individual incomes, tax rates, contribution history, lender assessment, and the specific contract date.
What to Do Next
Three concrete steps if you are working through this:
Check your FHSS eligibility now, not later. The timing rules are strict. The ATO determination must happen before you sign a contract. If you haven't started voluntary contributions yet, that limits how much you can release. A licensed financial adviser or SMSF specialist accountant (depending on your situation) can map out how contributions fit within your overall super caps.
Confirm your price cap and state grant before signing anything. Price caps are set by suburb, not just city. Grant amounts and stamp duty thresholds can change with each state budget. Check housingaustralia.gov.au for the First Home Guarantee caps and your relevant state revenue office for FHOG and stamp duty rules.
Talk to a licensed broker who participates in the Home Guarantee Scheme. You must apply through a participating lender or mortgage broker. Not every lender is on the panel, and the guarantee reservation needs to happen before you commit to a property. EWC connects clients with licensed brokers who understand these scheme requirements. You can start the conversation at /contact or book a call at https://elitewealthcreators.com/booking/.
If you are also considering a new build specifically, EWC's sourcing service and HomePay product (zero monthly payments for the first 12 months during construction, then standard repayments begin) may be worth reviewing alongside your scheme eligibility. See /services for more detail.
General information only, not personal financial advice. Speak with a licensed adviser before acting.