Buying a home: first home grants, stamp duty concessions, the 5% Deposit Scheme and foreign buyer rules

Your visa status comes first when you buy a home in Australia. Australian citizens and permanent residents can buy straight away, and can apply for the federal 5% Deposit Scheme and their state's first home grant and stamp duty concession. Temporary visa holders and buyers living overseas count as 'foreign persons': you must get FIRB approval from the ATO before you buy, you generally cannot buy an established (existing) home between 1 April 2025 and 30 June 2029, and you pay your state's foreign buyer surcharge duty on top. This page covers the federal scheme and the rules in NSW, VIC and QLD. It is not loan or investment advice.

Key facts

Federal 5% Deposit Scheme (formerly the Home Guarantee Scheme)

First home buyers need a deposit of at least 5%; single parents and legal guardians need at least 2%. From 1 October 2025 there is no income cap, no limit on places and no waiting list, and you do not pay lenders mortgage insurance (LMI). The government only guarantees part of your loan to the lender; the loan and the repayments are still yours. You can only apply through a Participating Lender as part of your home loan application, not directly to Housing Australia. After pre-approval you have 90 days to find a home. The lender will ask for proof of identity, your Medicare number, proof of citizenship or residency and a Home Buyer Declaration form. Living in the home is an ongoing condition.¹

5% Deposit Scheme property price caps (capital city and large regional centres / rest of state)

NSW A$1,500,000 / A$800,000; VIC A$950,000 / A$650,000; QLD A$1,000,000 / A$700,000; WA A$850,000 / A$600,000; SA A$900,000 / A$500,000; TAS A$700,000 / A$550,000; ACT A$1,000,000 everywhere; NT A$750,000 in the capital / A$600,000 elsewhere. Both the purchase price and the lender's valuation must be within the cap. If you buy land and build, the land price plus the building costs together must not exceed the cap. One suburb can have several postcodes with different caps, so confirm the cap with your lender.²

NSW: First Home Owner (New Homes) Grant

A$10,000, only for a newly built or substantially renovated home: a new home with a purchase price of no more than A$600,000, or land plus a building contract with a total value of no more than A$750,000 (including variations). Each applicant must be at least 18 and buy as an individual; at least one must be an Australian citizen or permanent resident. You, your spouse, partner or co-buyer must not have owned a home before 1 July 2000, and you and your spouse must not have received a FHOG anywhere in Australia. For contracts signed on or after 1 July 2023, you must move in within 12 months of purchase or completion and live there for a continuous 12 months; if you leave early you must repay the grant. Apply within 12 months of settlement or completion, usually through your lender (an approved agent).³

NSW: First Home Buyers Assistance Scheme (stamp duty concession)

For contracts signed on or after 1 July 2023: a new or existing home valued at A$800,000 or less pays no transfer duty; a home valued above A$800,000 and below A$1,000,000 pays a reduced rate. Vacant land for building a home: no duty up to A$350,000, reduced duty above A$350,000 and below A$450,000. At least one first home buyer must be an Australian citizen or permanent resident. You must move in within 12 months of settlement and live there for a continuous 12 months.⁴

VIC: First Home Owner Grant

A$10,000 to buy or build a new home (never sold, lived in or rented out; off-the-plan homes count by contract price) valued at no more than A$750,000, any type of home. All applicants must be natural persons aged 18 or over; at least one must be an Australian citizen or permanent resident at settlement (or when the home is ready to live in), and from 26 November 2025 New Zealand citizens can apply whether or not they hold a Special Category Visa (SCV). You cannot apply if you or your spouse have received a FHOG in Australia, owned a home before 1 July 2000, or lived for 6 continuous months in a home you owned after 1 July 2000. At least one applicant must move in within 12 months of settlement or completion and live there for 12 months. Most people apply through an approved agent such as a bank; you can also apply directly to the SRO within 12 months of settlement or completion.⁵

VIC: first home buyer stamp duty exemption or concession

No land transfer duty when the dutiable value (the purchase price or the market value, whichever is higher) is A$600,000 or less; a reduced rate from A$600,001 to A$750,000. It applies to a new home, an existing home or vacant land for building your first home (land is assessed on the land value only). All buyers must be natural persons aged 18 or over, buying at market value to live in the home. At least one must be an Australian citizen, New Zealand citizen or permanent resident, and at least one must move in within 12 months of settlement and live there for a continuous 12 months.⁶

QLD: First Home Owner Grant

A$30,000 for contracts signed on or after 20 November 2023 (A$15,000 for earlier contracts). New homes only; the value of the home and land (including contract variations) must be less than A$750,000. Applicants must be natural persons aged 18 or over; you or your spouse must be an Australian citizen or permanent resident. Neither of you may have received a FHOG in any Australian state, or owned and lived in a home after 1 July 2000. Your income does not affect eligibility. You must move in within 1 year of settlement and live there for a continuous 6 months.⁷

QLD: no transfer duty for first home buyers of new homes (first home (new home) concession)

Applies to contracts signed on or after 1 May 2025, with no price cap (it covers the home and the land that goes with it). You must buy as an individual, be at least 18, never have owned a residence anywhere in the world, pay market value, and move in with your personal belongings within 1 year of settlement and live there as your usual home (this deadline cannot be extended). For transactions from 1 August 2026, the buyer must be an Australian citizen, permanent resident or specified foreign retiree.⁸

Foreign persons (including temporary visa holders) need approval before buying

A foreign person must apply to the ATO for approval (a no objection notification) or an exemption certificate before buying residential property in Australia. Signing a contract without approval carries penalties. You pay the fee when you apply, and the ATO has up to 30 days to decide after it receives the full fee. From 1 April 2025 to 30 June 2029, foreign persons (including temporary residents buying a home to live in) are banned from buying established dwellings (existing homes), with only limited exceptions; temporary residents can still apply to buy a new home or vacant land. If you buy vacant land you must usually build within 4 years of approval and cannot sell before the home is built. If you buy a new home from a developer that holds a New or near-new dwelling exemption certificate, you do not need to apply yourself.⁹

Who does not need FIRB approval

Treasury's Guidance Note 6 gives examples: holders of a permanent visa, and New Zealand citizens who hold or are eligible for a Special Category Visa, do not need to apply for or obtain foreign investment approval before buying residential property (including established homes). To protect yourself before approval comes through, make the contract conditional on getting foreign investment approval.¹⁴

FIRB application fees (1 July 2026 to 30 June 2027)

New home, near-new home or vacant land: price under A$75,000, A$4,600; up to A$1,000,000, A$15,600; up to A$2,000,000, A$31,300; up to A$3,000,000, A$62,600. Established home (exceptions only): under A$75,000, A$13,800; up to A$1,000,000, A$46,800; up to A$2,000,000, A$93,900. Fees change every 1 July. After you buy, you must lodge a vacancy fee return every year; if the home is empty for more than 183 days (6 months) in a year you pay a vacancy fee, charged at twice the application fee for vacancy years from 9 April 2024.¹⁰

NSW: surcharge purchaser duty for foreign buyers

9% of the property's dutiable value, on top of transfer duty. You are not a foreign person if you are an Australian citizen; a permanent resident who is ordinarily resident (in Australia for at least 200 days in the year before the transaction); an exempt permanent resident; or a retirement visa (subclass 405 / 410) holder who meets the residence requirement. Exemptions and refunds are not automatic: your legal representative must apply to Revenue NSW.¹¹

VIC: foreign purchaser additional duty

8% for contracts signed on or after 1 July 2019 (7% for contracts from 1 July 2016 to 30 June 2019).¹²

QLD: additional foreign acquirer duty (AFAD)

The current rate is 8%, charged on top of transfer duty and only on the share held by the foreign buyer. A specified foreign retiree on a retirement visa (subclass 405 / 410) buying a home to live in is exempt (transactions on or after 1 January 2023).¹³

Who is this for, and what are the requirements?

• Anyone who wants to buy a home to live in in Australia, especially people who recently got PR or citizenship and are buying for the first time
• Temporary visa holders (student, work, 485, temporary partner visas and others) and people living overseas who want to buy in Australia: you are a foreign person, you need FIRB approval, and the ban on established homes applies to you
• The federal 5% Deposit Scheme and the state first home grants generally require at least one buyer to be an Australian citizen or permanent resident (VIC's stamp duty concession also accepts New Zealand citizens), that you and your spouse have never owned a home or received a grant in Australia, and that you buy to live in and stay for the required time
• State grants and stamp duty rules only apply to property in that state: check the revenue office of the state you are buying in (Revenue NSW, SRO Victoria, QRO). This page does not cover WA, SA, TAS, ACT or NT in detail

How do I do it? Steps and process

1. Check whether you are a 'foreign person'

   Australian citizens, permanent visa holders and New Zealand citizens who qualify for a Special Category Visa do not need FIRB approval. Everyone else, including all temporary visa holders, is a foreign person: you must get ATO approval before buying any home, and until 30 June 2029 you can generally only buy a new home, an off-the-plan home or vacant land. If one partner is a citizen or PR and the other is on a temporary visa, what matters is whose name goes on the title. Ask a solicitor or conveyancer first.

2. Check whether you qualify as a first home buyer

   The core conditions are similar in all three states: be at least 18, buy as an individual, at least one buyer is a citizen or PR, you and your spouse have never owned a home or received a grant in Australia, and you buy to live in and stay for the required time. The FHOG is for new homes only. Stamp duty concessions in NSW and VIC cover both new and existing homes (with price thresholds); in QLD a new home has no price cap. Use the eligibility tests on the state revenue office websites.

3. Work out your deposit: consider the federal 5% Deposit Scheme

   First check your eligibility and the price cap for your area on firsthomebuyers.gov.au, then apply through a Participating Lender. You apply together with your home loan; after pre-approval you have 90 days to find a home. The lender checks your identity, Medicare number and proof of citizenship or residency. This page does not give loan advice: compare lenders yourself or talk to a licensed professional about which lender to use and how much to borrow.

4. Foreign persons: get FIRB approval before you sign

   Lodge your application and pay the fee through the ATO's Online services for foreign investors; a decision takes up to 30 days. If you have not chosen a specific property yet, you can apply for an exemption certificate (valid for 12 months, for one property, up to a set value, in one state). Make the contract conditional on FIRB approval. If you buy off the plan from a developer, ask first whether the developer's exemption certificate covers your purchase.

5. Apply for the grant and the concession at contract and settlement

   The FHOG is usually applied for by your lender as an approved agent, so the money is available at settlement. If no lender is handling it, apply directly to the state revenue office within 12 months of settlement or completion. Your solicitor or conveyancer claims the stamp duty concession when they process the transfer. Foreign buyers pay the state's surcharge duty at the same time.

6. Move in and stay for the required time

   NSW and VIC require you to move in within 12 months and live there for a continuous 12 months; QLD requires you to move in within 1 year and stay for a continuous 6 months (QLD's new-home duty concession also requires you to move in within 1 year). If you cannot meet this, tell the revenue office and repay the grant, or you may face penalties and interest. Foreign buyers must also lodge a vacancy fee return with the ATO every year.

What documents do I need?

• Passport, visa or proof of citizenship (to work out whether you are a foreign person, and to prove citizenship or PR when you apply for a grant)
• Medicare card number, proof of identity and the Home Buyer Declaration form (5% Deposit Scheme, lodged by your lender)
• The contract of sale and settlement documents, needed when you apply for a grant
• FIRB approval (no objection notification) or exemption certificate (foreign persons)
• Your spouse's or partner's details: every state grant requires you to declare them, even if they are not on the title

What should I watch out for?

• The FHOG and the first home stamp duty concession are two different things. The grant is cash, and every state pays it only for new homes. The concession means paying less duty: in NSW and VIC it covers new and existing homes; in QLD a new home has no price cap and existing homes have separate rules. You can claim both.
• The 5% Deposit Scheme is not a government loan. The government guarantees your loan to the bank, which saves you LMI. A smaller deposit means a bigger loan and more interest, so work out whether it suits you. This page is not loan advice.
• Buying on a temporary visa has three extra costs: the FIRB application fee, your state's foreign buyer surcharge duty (NSW 9%, VIC 8%, QLD 8%) and the yearly vacancy fee return. Until 30 June 2029 you can also only buy a new home or vacant land. Waiting until you have PR is usually much cheaper.
• The ATO page is clear: during the ban, temporary residents can no longer apply to buy an established home to live in. Approvals granted before 1 April 2025 are handled under the old rules.
• NSW decides who is a 'foreign person' differently from FIRB: a permanent resident who was in Australia for fewer than 200 days in the year before the transaction may also have to pay the 9% surcharge, and you must apply for the exemption yourself.
• For QLD transactions from 1 August 2026, every home concession requires the buyer to be a citizen, PR or specified foreign retiree. Temporary visa holders cannot get the duty concession even if they meet the other conditions.
• State revenue offices check applications. Giving false information can lead to prosecution. If you do not live in the home for the required time you must repay the grant and may be fined.
• This page is a plain-English summary of public information. Rules differ by state and amounts change every year, so check firsthomebuyers.gov.au, your state revenue office and the ATO website. It is not legal, loan or investment advice and does not recommend any agent or lender.

What has changed recently?

• 2026-08-01
  QLD: for transactions from this date, the first home duty concession requires the buyer to be an Australian citizen, permanent resident or specified foreign retiree.Source: qro.qld.gov.au ↗
• 2026-07-01
  FIRB application fees move to the 2026–27 rates; QLD confirms that the A$30,000 FHOG continues for contracts signed from 1 July 2026.Source: qro.qld.gov.au ↗
• 2025-10-01
  The federal Home Guarantee Scheme becomes the Australian Government 5% Deposit Scheme: the income cap and the limit on places are removed, and the price caps are raised.Source: firsthomebuyers.gov.au ↗
• 2025-05-01
  QLD: for contracts signed from this date, first home buyers of a new home get the first home (new home) concession, with no price cap.Source: qro.qld.gov.au ↗
• 2025-04-01
  The ban on foreign persons (including temporary residents) buying established homes starts. It was due to end on 31 March 2027 and has been extended to 30 June 2029.Source: ato.gov.au ↗

Common questions

Where can I check the official information?

1. Australian Government 5% Deposit SchemeHousing Australia · firsthomebuyers.gov.au
2. Property Price CapsHousing Australia · firsthomebuyers.gov.au
3. First Home Owner (New Homes) GrantRevenue NSW · revenue.nsw.gov.au
4. First Home Buyers Assistance SchemeRevenue NSW · revenue.nsw.gov.au
5. Understanding the First Home Owner GrantState Revenue Office Victoria · sro.vic.gov.au
6. First home buyer duty exemption or concessionState Revenue Office Victoria · sro.vic.gov.au
7. First home owner grant – eligibility criteriaQueensland Revenue Office · qro.qld.gov.au
8. First home (new home) concessionQueensland Revenue Office · qro.qld.gov.au
9. Apply to buy residential property as a foreign personAustralian Taxation Office · ato.gov.au
10. Residential fees for a foreign personAustralian Taxation Office · ato.gov.au
11. What is surcharge purchaser dutyRevenue NSW · revenue.nsw.gov.au
12. Foreign purchaser additional duty (current rates)State Revenue Office Victoria · sro.vic.gov.au
13. Assessing and calculating AFADQueensland Revenue Office · qro.qld.gov.au
14. Guidance Note 6: Residential Land (Version 5, 1 July 2026)The Treasury (Foreign Investment Review Board) · foreigninvestment.gov.au

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