Buying your first home is one of the biggest financial steps you will ever take. And in Australia, it comes with a whole stack of costs that go beyond just the purchase price — stamp duty, legal fees, inspections, insurance, and more. The good news is that first home buyers get access to some generous concessions and grants that can save you thousands. The bad news is that the rules vary wildly depending on which state or territory you are buying in.
In this guide, we will walk through the main costs involved in buying your first home, the concessions and grants available, and the tools you can use to calculate exactly what you will pay.
Stamp Duty: The Big One
Stamp duty (also called transfer duty in some states) is a tax charged by your state or territory government when you buy property. It is based on the purchase price of the property, and it can be a very large amount — often tens of thousands of dollars.
Here is a rough guide to what stamp duty looks like on a $600,000 property in each state for a first home buyer:
- NSW: $0 (full exemption for properties up to $800,000 under the First Home Buyers Assistance Scheme)
- VIC: $0 (full exemption for properties up to $600,000; concession up to $750,000)
- QLD: $0 (full concession for homes up to $700,000 for first home buyers)
- WA: $0 (full exemption for homes up to $430,000; reduced rates above)
- SA: $0 (no stamp duty on properties up to $650,000 for first home buyers from mid-2023)
- TAS: 50% discount (for established homes up to $600,000)
- ACT: Various concessions depending on income and property value
- NT: Stamp duty concessions available through the FHOG scheme
As you can see, the rules are completely different in every jurisdiction. The thresholds, rates, and eligibility criteria all vary. Our stamp duty calculator lets you select your state, enter your purchase price, and see exactly what you will pay — including any first home buyer concessions you are entitled to.
The First Home Owner Grant (FHOG)
The First Home Owner Grant is a one-off payment from the government to help first-time buyers get into the property market. It is available across all states and territories, but the amount and conditions differ:
- NSW: $10,000 for new homes up to $600,000
- VIC: $10,000 for new homes up to $750,000 (or $20,000 in regional Victoria)
- QLD: $30,000 for new homes up to $750,000
- WA: $10,000 for new homes up to $750,000
- SA: $15,000 for new homes up to $650,000
- TAS: $30,000 for new homes built or purchased up to $600,000
- ACT: The FHOG has been replaced with stamp duty concessions
- NT: $10,000 for new homes (additional grants may apply)
One important thing to note: the FHOG generally only applies to new homes — newly built houses, apartments, or homes purchased off the plan. Buying an existing (established) home usually does not qualify for the FHOG, though you may still be eligible for stamp duty concessions.
The First Home Super Saver Scheme (FHSSS)
The FHSSS is a clever way to save for a deposit using the tax advantages of superannuation. Here is how it works: you make voluntary concessional contributions (like salary sacrifice) into your super, up to $15,000 per financial year and $50,000 in total. When you are ready to buy, you apply to withdraw those contributions (plus a deemed return) to put towards your deposit.
The benefit is that your savings are taxed at just 15% going in (inside super) instead of your marginal tax rate. When you withdraw them under the FHSSS, they are taxed at your marginal rate minus a 30% offset. For most people, this results in a significant tax saving compared to saving in a regular bank account.
For example, if you earn $80,000 and salary sacrifice $10,000 into super under the FHSSS, you save roughly $1,500 in tax compared to saving that $10,000 from after-tax income. Over three or four years of saving, that adds up to a meaningful boost to your deposit. Use our salary calculator to see how salary sacrifice affects your take-home pay.
Other Costs to Budget For
Stamp duty and the deposit are the big-ticket items, but there are plenty of other costs that add up quickly:
- Conveyancing or legal fees: $1,000 to $3,000. A conveyancer or solicitor handles the legal transfer of the property.
- Building and pest inspection: $400 to $800. Essential for identifying any defects or pest damage before you buy.
- Loan application fees: $0 to $600, depending on your lender.
- Lenders Mortgage Insurance (LMI): If your deposit is less than 20% of the purchase price, most lenders will require LMI. This can cost anywhere from $2,000 to $30,000 depending on the loan size and your deposit. The government's Home Guarantee Scheme can help eligible buyers avoid LMI — more on that below.
- Moving costs: $500 to $2,000 for a removalist, depending on distance and volume.
- Council rates, water, and strata fees: These are ongoing costs you will start paying from settlement day.
The Home Guarantee Scheme
The Australian Government's Home Guarantee Scheme helps eligible first home buyers purchase a home with a deposit as small as 5% (or even 2% in some cases) without paying Lenders Mortgage Insurance. The government effectively guarantees the difference between your deposit and the 20% threshold that lenders normally require.
There are three streams:
- First Home Guarantee: 35,000 places per year for first home buyers with a 5% deposit
- Regional First Home Buyer Guarantee: 10,000 places per year for buyers in regional areas
- Family Home Guarantee: 5,000 places per year for single parents with a 2% deposit
Property price caps apply, and they vary by location. In Sydney, the cap is $900,000. In Melbourne, it is $800,000. In regional areas, it is lower. Check the Housing Australia website for current caps in your area.
How Much Do You Actually Need to Save?
Let us put together a realistic example. Say you are buying a $650,000 apartment in Melbourne as a first home buyer:
- Deposit (5%): $32,500
- Stamp duty: $0 (VIC first home buyer exemption applies up to $600,000 — you would pay a reduced amount on a $650,000 property, approximately $7,175)
- Conveyancing: $1,500
- Building inspection: $600
- Loan fees: $300
- LMI: $0 if using the Home Guarantee Scheme; otherwise around $12,000 to $15,000
Total upfront cost: roughly $42,000 with the Home Guarantee Scheme, or closer to $55,000 without it. That is a significant difference, and it highlights why it is so important to explore all the concessions available to you.
Tools to Help You Plan
We have built several calculators to help you figure out the numbers for your first home purchase:
- Stamp duty calculator — see exactly what you will pay in your state, with first home buyer concessions applied
- Salary calculator — understand your take-home pay so you can budget for savings
- Capital gains tax calculator — useful if you are selling an investment to fund your deposit
- Superannuation calculator — check how the FHSSS could boost your deposit savings
The Bottom Line
Buying your first home is expensive, no question. But between stamp duty exemptions, the FHOG, the First Home Super Saver Scheme, and the Home Guarantee Scheme, first home buyers in Australia have access to some genuinely helpful support. The key is to research what is available in your state, run the numbers, and start planning early. Use our stamp duty calculator as your starting point and work out exactly what your first home will really cost.