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The 5% deposit scheme with no income caps, FHSS, state grants and stamp duty — what actually applies in 2026-27, with the recent rule changes most guides still get wrong.
Last updated 30 August 2026 · verified against Housing Australia and state revenue offices
The rules moved fast over the past year, and much of what you'll read elsewhere is out of date. The four changes that matter:
Buy with a 5% deposit and no Lenders Mortgage Insurance — the government guarantees the gap up to 20%. Since 1 October 2025 it is open to every eligible first home buyer: no income caps, no limit on places, no waiting list. The property price caps by location:
| Location | Price cap | Rest of state |
|---|---|---|
| Sydney & major NSW centres | $1,500,000 | $800,000 |
| Melbourne & Geelong | $950,000 | $650,000 |
| Brisbane, Gold & Sunshine Coast | $1,000,000 | $700,000 |
| Perth | $850,000 | $600,000 |
| Adelaide | $900,000 | $500,000 |
| Hobart | $700,000 | $550,000 |
| ACT | $1,000,000 | — |
| Darwin / NT | $600,000 | — |
LMI on a $600K home with a 5% deposit would typically cost $12,000–$18,000 — the guarantee removes that entirely. Check your borrowing power with the Borrowing Capacity Calculator and the true monthly cost with the LMI Calculator if you're weighing a bigger deposit instead.
The FHSS scheme lets you build your deposit inside super, where contributions are taxed at 15% instead of your marginal rate.
How it works: salary sacrifice into super → apply to the ATO for release under FHSS → receive contributions plus deemed earnings → put it toward your deposit. You must sign a contract within 12 months of the release (extendable once). Run your own numbers in the FHSS Calculator.
Every grant is for new builds only — no state pays a grant on an established home.
| State | Grant | Property cap | Note |
|---|---|---|---|
| NT | up to $50,000 | No cap | HomeGrown Territory — to Sep 2027 |
| QLD | $30,000 | $750K | Extended in the 2026-27 Budget |
| TAS | $20,000 | No cap | Was $30,000 until 1 Jul 2026 |
| SA | $15,000 | No cap | Cap abolished |
| NSW | $10,000 | $600K new / $750K house+land | |
| VIC | $10,000 | $750K | |
| WA | $10,000 | Varies by region | |
| ACT | — | — | Duty waiver instead (income-tested) |
Verified 30 August 2026 against state revenue offices. Grants stack with the 5% Deposit Scheme and FHSS.
Duty is the biggest upfront cost after the deposit — and it now differs sharply between new and established homes:
| State | New builds | Established homes |
|---|---|---|
| QLD | $0 — any value (from 1 May 2025) | Exempt ≤ $700K, concession to $800K |
| SA | $0 — any value | Full duty |
| ACT | $0 under the HBCS (income-tested) | $0 under the HBCS (income-tested) |
| NSW | Exempt < $800K, concession to $1M | Exempt < $800K, concession to $1M |
| VIC | Exempt ≤ $600K, concession to $750K | Exempt ≤ $600K, concession to $750K |
| WA | Exempt ≤ $600K, phased above (from 7 May 2026) | Exempt ≤ $600K, phased above |
| TAS | Full duty | Full duty — exemption ended 30 Jun 2026 |
Use the Stamp Duty Calculator for the exact figure on your price, state and property type — including vacant-land rules.
The schemes stack. A first home buyer in 2026 can combine all of these:
Richify AI tracks your FHSS savings alongside super, investments, and savings accounts — showing exactly how close you are to your deposit target.
Sources: Housing Australia (Home Guarantee Scheme expansion, 1 Oct 2025); Queensland Government (new-build duty abolition, 1 May 2025, and 2026-27 Budget grant extension); RevenueSA; State Revenue Office Tasmania (established-home duty relief ended 30 Jun 2026); RevenueWA (FHOR, 7 May 2026); Revenue NSW; SRO Victoria; NT Treasury (HomeGrown Territory). General information only, not financial advice — confirm eligibility with the relevant agency before contracting.
Since 1 October 2025 the expanded First Home Guarantee lets ANY eligible Australian first home buyer purchase with a 5% deposit and no Lenders Mortgage Insurance — the government guarantees the gap up to 20%. The old limits are gone: no income caps (previously $125,000 single / $200,000 couple), no cap on places (previously 35,000/year), and much higher property price caps — $1.5M in Sydney, $950K in Melbourne, $1M in Brisbane and the ACT, $900K in Adelaide, $850K in Perth, $700K in Hobart, $600K in Darwin.
The FHSS scheme lets you save for your first home inside super. You can make voluntary concessional contributions (salary sacrifice) of up to $15,000/year that count toward release, and withdraw up to $50,000 total (plus deemed earnings) for a home deposit.
Because contributions are taxed at 15% instead of your marginal rate, you save more than in a regular bank account.
As of the 2026-27 financial year: NT up to $50,000 (HomeGrown Territory, new homes, no price cap), QLD $30,000 (new homes under $750K), TAS $20,000 (new homes — reduced from $30,000 on 1 July 2026), SA $15,000 (new homes, no price cap), and $10,000 in NSW (new under $600K, or house-and-land under $750K), VIC (new under $750K) and WA. The ACT offers no grant but waives stamp duty instead.
All grants are for new builds, not established homes.
On NEW builds: Queensland (contracts from 1 May 2025, any value) and South Australia (any value) charge first home buyers zero stamp duty, and the ACT waives duty under its income-tested Home Buyer Concession Scheme. On established homes: NSW exempts under $800K (concession to $1M), VIC under $600K (concession to $750K), QLD under $700K (concession to $800K), and WA under $600K from 7 May 2026.
Tasmania's established-home exemption ended 30 June 2026 — full duty now applies there.
Traditionally 20% to avoid Lenders Mortgage Insurance (LMI). But under the expanded First Home Guarantee, any eligible first home buyer can purchase with just 5% and no LMI — for a $600K home that's $30K instead of $120K, and LMI at 95% LVR would typically have cost $12,000–$18,000.
Budget on top of the deposit for stamp duty (unless exempt), legal/conveyancing fees (~$2K) and a building inspection.
