First Home Buyer Incentives

You’ve been saving for years for a house deposit, you’ve applied for a loan and done research on the property market. So, what’s next? If you’re well along the path of finally stepping onto the property ladder and securing your first home, don’t forget to look into whether you are eligible for a grant (which is a one-off cash payment), stamp duty (also known as transfer duty) concession or other first home buyer scheme. Around the nation, all state governments and territories have incentives for first home buyers. Here are a few:

• The NSW Government offers a $10,000 grant for new properties valued at less than $600,000. If you are building and the value of house and land is less than $750,000, you are also entitled to the grant. There are also stamp duty concessions offered to first-time buyers in NSW – you’ll pay no stamp duty on properties valued under $650,000 or vacant land valued under $350,000. There are also discounts available if the property is valued between $650,000 and $800,000 or the land is valued between $350,000 and $450,000.
• The Victorian Government offers grants for first timers buying new homes valued up to $750,000. The grant is $10,000 for new properties in non-regional areas and $20,000 for regional areas. First timers will also pay no stamp duty on a property valued at less than $600,000 and will get a discount on stamp duty if the property is valued between $600,000 and $750,000.
• The Queensland Government grant for first timers buying a new property valued under $750,000 is $15,000. First home buyers in that state pay no stamp duty on a property valued under $500,000 or vacant land under $250,000. Stamp duty discounts are offered on properties under $549,999 and vacant land under $399,999.

The other states and territories also offer grants and discounts. However, whether you are buying in Brisbane or Byron, Bunbury or Ballarat, it’s a good idea to check exactly what is offered at the time you are looking to buy. There is no point budgeting for a $10,000 or $15,000 cash injection only to realise the scheme ended a week before you signed the contract. The schemes come and go – sometimes it seems on the whim of the government of the time – and the rules around can change quickly, so make sure you understand exactly what you are eligible for and when. Your mortgage broker can help you out with this.

The Federal Government also offers the First Home Super Saver scheme. Introduced on July 1, 2018, the scheme allows eligible home buyers to make voluntarily contributions of up to $30,000 to their super and then withdraw this amount (plus earnings, minus tax) to buy their first home. The idea behind the scheme is that because you’re saving through super, you pay less tax than you would by saving outside super, which means, in theory, you can build a bigger deposit more quickly. Couples can both use the scheme, which means they can save up to $60,000.

There are plenty of eligibility rules surrounding these schemes and grants. Most require that you and your spouse or partner are 18 years or older, and are Australian citizens or permanent residents. Income thresholds apply on some of these schemes, and you must be buying a home to live in, not an investment property. You can’t have owned property at all or within a certain period and you must be intending to live in the property for at least 12 months.

With the various schemes and the ever-changing rules around them, it can be confusing, but it is well worth looking into what schemes and incentives are available.