🏠Complete Guide

First Home Buyer
Guide Australia 2026

FHSS, government grants, stamp duty exemptions, and how to build your deposit faster. Everything an Australian first home buyer needs to know.

1. The First Home Super Saver Scheme (FHSS)

The FHSS scheme is the most powerful tool for Australian first home buyers. It lets you save for a deposit inside super, where contributions are taxed at 15% instead of your marginal rate.

Max voluntary concessional per year$15,000
Max total withdrawal$50,000
Tax on FHSS contributions15%
Tax saving vs $100K income (37% rate)$3,300/year

How it works: salary sacrifice up to $15,000/year into super → apply to ATO for release under FHSS → receive contributions + deemed earnings (SIC rate) → use for deposit. You must sign a contract within 12 months of receiving the funds.

2. First Home Buyer Grants by State (2026)

StateGrant AmountProperty CapType
NSW$10,000$600KNew only
VIC$10,000$750KNew only
QLD$30,000$750KNew only
WA$10,000$750KNew only
SA$15,000$575KNew only
TAS$30,000No capNew only
ACTStamp duty concession
NT$10,000No capNew only

Amounts and caps may change. Check your state revenue office for current eligibility.

3. The First Home Guarantee (FHBG)

The federal government's First Home Guarantee lets eligible first home buyers purchase with just a 5% deposit — without paying Lenders Mortgage Insurance (LMI).

  • 35,000 places available annually (2025-26)
  • Income cap: $125,000 (single) / $200,000 (couple)
  • Property price caps vary by location (e.g., Sydney $900K, Melbourne $800K, Brisbane $700K)
  • No LMI — government guarantees the difference between your deposit and 20%

LMI on a $600K home with 5% deposit typically costs $12,000–$18,000 — the FHBG saves you this entire amount.

4. Stamp Duty Exemptions

Stamp duty is the biggest upfront cost after the deposit itself. First home buyer exemptions vary dramatically by state:

StateFull ExemptionConcession
NSWUnder $800K$800K–$1M
VICUnder $600K$600K–$750K
QLDUnder $500K (vacant land: $250K)$500K–$550K
WAUnder $430K$430K–$530K
SAConcession available
TASUnder $400K (vacant: $200K)

Use our Stamp Duty Calculator for exact costs in your state.

5. Building Your Deposit: A Strategy Stack

The most effective approach combines multiple deposit-boosting strategies:

  1. FHSS salary sacrifice — $15K/year into super, save $3,300 in tax annually, withdraw up to $50K for deposit
  2. High-interest savings account — Keep emergency funds and additional savings earning 5%+ in a HISA
  3. First Home Guarantee — Apply for 5% deposit (no LMI). 35,000 places in 2025-26
  4. Stamp duty exemption — Buy under the threshold for your state
  5. Family Guarantee — Some lenders accept a parent's property as additional security

Track Your Deposit Progress with Felix

Felix tracks your FHSS savings alongside super, investments, and savings accounts — showing exactly how close you are to your deposit target.

❓ Frequently Asked Questions

What is the First Home Super Saver Scheme (FHSS)?

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, and withdraw up to $50,000 total (plus 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.

What first home buyer grants are available in 2026?

Grants vary by state: NSW ($10,000 for new homes under $600K), VIC ($10,000 under $750K), QLD ($30,000 for new homes), WA ($10,000), SA ($15,000), TAS ($30,000). The federal First Home Guarantee lets you buy with 5% deposit without paying LMI. Check your state's current thresholds.

What is stamp duty and can I get an exemption?

Stamp duty (transfer duty) is a state tax paid when buying property. First home buyers often get exemptions or concessions: NSW exempt under $800K, VIC exempt under $600K, QLD concession under $550K. Use Richify's Stamp Duty Calculator to see exact costs for your state.

How much deposit do I need for a first home in Australia?

Traditionally 20% to avoid Lenders Mortgage Insurance (LMI). But the First Home Guarantee lets eligible buyers purchase with just 5% deposit (no LMI). For a $600K home: 20% = $120K, 5% with FHBG = $30K. Plus stamp duty (if not exempt), legal fees (~$2K), and building inspection.