First Home Buyer Grant 2025 | State Amounts & Rules

The 2025 First Home Buyer Grant provides $10,000–$25,000 to eligible first-home buyers across Australia. Applications open 1 July 2025, with streamlined digital processing through participating lenders and state revenue offices.

Grant basics

The First Home Owner Grant (FHOG) provides a tax-free lump sum payment to help first-time buyers enter the property market. Unlike loans or shared equity schemes, this is money you don't need to pay back, making it one of the most valuable supports available to first-home buyers.

The grant is typically paid at settlement or when your home reaches the "lock-up" stage for new builds. This timing means you can use the grant to reduce your deposit requirements or cover settlement costs like stamp duty, legal fees, and moving expenses.

Most states limit the grant to new homes or substantially renovated properties, with Tasmania and Northern Territory being the only jurisdictions that extend grants to established homes. The definition of "substantially renovated" varies by state but generally means renovations worth at least 50% of the property's pre-renovation value.

A critical requirement across all states is the residency obligation. You must move into the property as your primary residence within 12 months of settlement and continue living there for a specified period, typically 6-12 months. This prevents investors from accessing grants intended for genuine owner-occupiers.

State-by-state comparison

The grant landscape varies dramatically across Australia:

• Tasmania offers the highest grant at $30,000, and uniquely allows it for established homes as well as new builds.
• Queensland and South Australia provide $15,000 grants, but only for new or substantially renovated homes.
• Western Australia offers $10,000, the lowest amount among participating states.
• NSW and Victoria have abolished their FHOG schemes, instead focusing on stamp duty savings and other concessions.

Property price caps are equally important to understand. These caps determine the maximum purchase price eligible for the grant:

Regional areas typically have higher price caps, recognizing that while property prices are generally lower outside major cities, some regional markets have experienced significant price growth.

Eligibility checklist

Meeting the eligibility criteria is crucial before you sign a contract, as you can't apply for grants retroactively. Here's what you need to qualify:

The "never owned property" rule is strictly interpreted. This includes any property ownership anywhere in Australia, regardless of whether you lived in it. It also includes owning property through companies or trusts where you had beneficial ownership.

For couples, both partners must meet the eligibility criteria. If one partner has previously owned property, neither partner can access the grant. However, if partners purchase together and both are eligible, they still only receive one grant per transaction.

What counts as "substantial renovation"?

Each state defines substantial renovation differently, but common requirements include:

• Renovation value: Usually must exceed 50% of the pre-renovation property value
• Comprehensive nature: Must involve structural changes, not just cosmetic updates
• Planning approval: May require council development approval for significant renovations
• Professional involvement: Some states require licensed builders and formal contracts

Residency obligations

The residency requirement is designed to ensure grants go to genuine owner-occupiers, not investors. Key points include:

• Primary residence: The property must be your main place of residence, not a holiday home
• Move-in timeframe: You must occupy the property within 12 months of settlement
• Continuous occupancy: Most states require 6-12 months of continuous residence
• Exceptions: Limited exceptions for work relocations or family emergencies

Application timing and process

Most states require you to apply for FHOG before settlement, though some allow applications up to 12 months after settlement. The typical process involves:

1. Pre-approval: Apply online through your state revenue office website
2. Documentation: Provide contracts, identity documents, and statutory declarations
3. Assessment: Applications typically take 28-42 days to assess
4. Payment: Grants are paid at settlement or lock-up stage for new builds

The First Home Owner Grant remains one of the most direct forms of government assistance for first-time buyers. While the amounts and rules vary by state, the grant can provide a significant boost to your deposit or help cover settlement costs. Always check current eligibility criteria and price caps before making purchase decisions, as these can change with little notice.

First-home buyers should also consider the Help to Buy shared equity scheme and First Home Super Saver Scheme to maximize available support when entering the property market.