First home owner grant explained

Buying your first home in Australia can be challenging, especially with rising costs in an already competitive market. According to KPMG, median house prices are expected to continue increasing, projected to grow by 3.3% in 2025, following a 5.1% rise in 2024.

Fortunately, there are a lot of state and federal government incentives available to help buyers secure their first property. In this guide, we will explore the First Home Owner Grant, an important initiative in Australia that helps first-home buyers ease upfront costs.

Important reminder: This guide is for informational purposes only and not financial advice. You must do your investigations and seek out qualified financial advisers before making any financial commitment.* See the full disclaimer at the end of the article.

What is the First Home Owner Grant?

The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of GST on home ownership. It is a one-off payment designed to assist first-time buyers with the costs of buying or building a new home. The amount and eligibility criteria vary by state and territory - and may be updated from time to time - but the grant generally applies to newly built properties, not established homes.

Who is eligible for the First Home Owner Grant?

Eligibility criteria for the FHOG can vary between states and territories. The example below is based on the guidelines from the State Revenue Office of Victoria. If you are buying or building in another state, be sure to check the official website for that state or territory to confirm the current rules.

1. Citizenship and Age Requirements

• Age: All applicants must be at least 18 years of age at the time of settlement or completion of construction.

• Citizenship/Residency: At least one applicant must be an Australian citizen or a permanent resident at the time of settlement or completion of construction. New Zealand citizens holding a special category visa are also eligible, provided they are physically in Australia at the time of settlement.

2. Property Value and Type (New vs. Established)

• Property Type: The grant is only for buying or building a new home. This includes homes that have not been previously sold or occupied.
• Property Value: The total value of the new home must be $750,000 or less.
• Established Homes: You are not eligible for the FHOG if you are buying an established home. However, you may be able to receive stamp duty exemptions or concessions.

3. Residency and Occupancy Rules

• At least one applicant must occupy the home as their principal place of residence (PPR) for a continuous period of at least 12 months.
• This 12-month period must start within 12 months of the settlement date or the completion of construction.
• Exemption: Some states, such as Victoria, provide exemptions for Defence Force personnel — be sure to check your state’s rules.

4. Prior Ownership Restrictions

• You are generally not eligible for the FHOG if you or your spouse/partner has:
• Previously received the FHOG in Australia.
• Owned a home or other residential property in Australia before 1 July 2000.
• Owned and lived in a residential property in Australia on or after 1 July 2000 for a continuous period of at least 6 months.

How much is the first home owner grant worth?

The value of the First Home Owner Grant depends on where in Australia you’re buying. Each state and territory determines the grant amount you receive, what eligibility criteria you must meet, and the value ceiling for the property, so the support available differs.

First home owner grant by state

Here’s an example of how much eligible recipients may receive depending on their state or territory:

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What are the documents required when applying for FHOG?

When preparing your First Home Owner Grant application, ensure you have:

• Proof of identity & entitlement -e.g. Australian birth certificate, passport, or citizenship/permanent residency evidence.
• A photo‑ID linking you to your identity - e.g. driver's licence, passport (if not used already), or government-issued ID.
• Proof of residence - e.g. Medicare card, vehicle registration, Centrelink/DVA card.
• Proof of current residential address, such as a utility bill (New South Wales only).
• Contract documents: Signed purchase contract or building contract for a new or substantially renovated home.
• Residency evidence: Proof you intend to live in the property as your principal place of residence.
• Additional forms may include marriage certificates, separation declarations, or name-change documents, as applicable.

*The FHOG Lodgment Guide for your state clearly outlines all required documents and is accessible via your state’s portal here.

How to apply for the FHOG

1. Log in via the official site

Go to firsthome.gov.au and select your state or territory to enter the relevant application portal.

2. Check your eligibility

Answer initial questions in the portal, such as whether your bank or credit union is lodging the application for you, and confirm whether your property purchase or construction is complete.

3. Lodge your application

Decide who gets to lodge your application: your lender or an approved agent. Most applicants take this route. Alternatively, you can apply yourself via the state portal.

4. Provide supporting information

Complete the form with applicant details and upload supporting documents.

5. Receive your reference code

Once notified that your application has been accepted for processing, you’ll receive a lodgement reference number (UIN). Quote this number in any future correspondence.

6. Application processing

Application processing varies between states. In Queensland, it allows around 10 business days after submitting all documents. In New South Wales, on the other hand, processing takes 15 business days once fully submitted.

7. Moving in or notifying of changes

You must occupy the home within 12 months (or 6 months for older contracts) and live there continuously for the required period. If your circumstances change, notify the revenue office within 14 days to avoid hefty financial penalties.

Other support available for first home buyers

While some programs offer a one-off grant for new homes, there is a wider range of government assistance available to help reduce the upfront costs of buying your first property. In addition to the First Home Owner Grant scheme, here are other key initiatives first home buyers may be eligible for:

1. First home buyers assistance schemes

This national scheme, administered by Housing Australia, helps eligible first home buyers purchase a home with a lower deposit by providing a government guarantee that reduces or eliminates the need for Lenders Mortgage Insurance (LMI).

• First Home Guarantee: Allows eligible first home buyers to purchase a home with as little as a 5% deposit, with the government guaranteeing up to 15% of the property’s value.
• Family Home Guarantee (for single parents): Designed for eligible single parents or legal guardians with at least one dependent child. It allows them to purchase a home with a deposit as low as 2%, with a government guarantee of up to 18%.
• Regional First Home Buyer Guarantee: Aimed at supporting eligible buyers purchasing a home in a regional area, with only a 5% deposit required and a 15% government guarantee.

Learn more here.

2. Stamp duty concessions

Stamp duty is one of the largest upfront costs when purchasing a home, but many state and territory governments offer concessions or exemptions for eligible first-home buyers. These vary depending on location and property type. Some current examples include:

*Each state has its own eligibility criteria and benefits, so it’s important to check your local government's current rules as they may change from time to time.

3. Help-to-buy (shared equity) scheme

The Help-to-Buy program helps homebuyers purchase new or existing homes with deposits as low as 2%. The government contributes up to 40% for new homes and 30% for existing ones, lowering mortgage costs and removing the need for Lenders Mortgage Insurance (LMI). Buyers only pay for their share (typically 60–98%), with no interest or rent on the government’s portion. When the property is sold or refinanced, the government’s share is repaid, adjusted for market value changes.

What to consider before applying for FHOG

Government incentives are designed to help you get started, but it’s worth looking beyond the initial support. While grants can make the first step easier, relying solely on incentives can be risky. Think about what is most comfortable for you to handle repayments over time, along with potential rate changes and the everyday costs that come with owning a home.

*Disclaimer: All information set out in this article, including but not limited to First home buyer government grants, stamp duty concessions, other government schemes and external links are provided as a general guide only as at the date of this publication and do not constitute advice. Actual figures and grants may vary depending on the customer’s individual circumstances and the eligibility criteria outlined on different state and territory government websites (and as amended from time to time). Purchasers are responsible for seeking independent professional advice or making their own enquiries in relation to eligibility for any grants or schemes. No representations or warranties are made as to the accuracy, currency or completeness of any estimates and their contents. Date of publication: September 2025.