Purchasing your first house is a huge achievement, but it can also provide a financial challenge for many people. Thankfully, Queensland provides first-time homebuyers various grants and concessions to lessen their financial burden. You can save thousands of dollars and expedite the process of purchasing your first house by being aware of these concessions.
Understanding First Home Buyer Concession
These first-home buyer concessions are formed to support individuals and families in achieving homeownership. In Queensland, these concessions usually come in the form of grants, concession on stamp duty, and other financial assistance. Federal and state Governments provide these benefits to increase the affordability of home ownership.
1. First Home Owner Grant (FHOG)
The Queensland Government provides the First Home Owner Grant (FHOG) to first-time home buyers who purchase or build a new home. The grant helps first-time purchasers with the expenditures of buying or developing a new house.
Eligibility Criteria
To be eligible for the FHOG, sharing some criteria, these conditions must hold apart from some other conditions :
- First Home Buyer: You must have never owned a residential property.
- Permanent Residency: You must be an Australian citizen or permanent resident.
- Age Requirement: At least 18 years old.
- Property Type: The home must be new. It could be a newly built or fully renovated home.
- Value Limit: The property’s value cannot exceed the FHOG threshold i.e. $750,000.
- Residing Requirement: You must move into the residence within one year of settlement and stay for at least six months.
It is important to check the latest and complete list of eligibility criteria whenever you choose to apply.
Grant Amount
According to the most recent update, the FHOG amount for newly constructed homes in Queensland is up to $30,000. Confirming the most recent data is essential before applying, as this amount is subject to change.
2. First Home Buyer Concession on Stamp Duty
The state government imposes a fee on real estate purchases known as stamp duty. In Qld, stamp duty is based on the type and value of the property. You might be qualified for a tax concession as a First-Time Home Buyer, which would lower your required payment amount.
Eligibility Criteria
To qualify for the First Home Buyer Concession on Stamp Duty sharing some criteria, these conditions must hold apart from some other conditions :
- Needs to be a First Home Buyer: You must be a first-time home buyer and have never owned a property before.
- Meet the Citizenship Requirements: You must be an Australian citizen or a permanent resident.
- Concession Limits: The property needs to be purchased within the well-specified concession limits.
It is important to check latest and complete list of eligibility criteria whenever you choose to apply
Concession Details
The amount of transfer stamp duty you may have to pay when land in Queensland is transferred to you for residential use may be reduced by a concession you can claim. When you apply a concession rate to the property’s taxable value, the rates for the home, first home, and first home vacant land concessions are listed below (the transfer duty rates apply if you are not eligible for a concession or exemption). Senior card holders and retired persons, as well as concession card holders, do not qualify for any additional concessions or exemptions.
Home Concession
| Purchase price/value | Duty rate |
| Not more than $350,000 | $1.00 for each $100 or part of $100 |
| More than $350,000 to $540,000 | $3,500 + $3.50 for every $100, or part of $100, over $350,000 |
| $540,000 to $1,000,000 | $10,150 + $4.50 for every $100, or part of $100, over $540,000 |
| More than $1,000,000 | $30,850 + $5.75 for every $100, or part of $100, over $1,000,000 |
First Home Concession
The first home concession’s threshold was modified on June 9, 2024. Duty is computed by deducting the additional concession amount from the home concession rate. Contracts signed on or after June 9, 2024, should use this table.
| Purchase price/value | Concession (deduct this amount from the amount calculated using the home concession rate) |
| Not more than $709,999.99 | $17,350 |
| $710,000 to $719,999.99 | $15,615 |
| $720,000 to $729,999.99 | $13,880 |
| $730,000 to $739,999.99 | $12,145 |
| $740,000 to $749,999.99 | $10,410 |
| $750,000 to $759,999.99 | $8,675 |
| $760,000 to $769,999.99 | $6,940 |
| $770,000 to $779,999.99 | $5,205 |
| $780,000 to $789,999.99 | $3,470 |
| $790,000 to $799,999.99 | $1,735 |
| $800,000 or more | Nil |
Tips for Stamp Duty Concession
- Early Calculation: To understand the financial implications, you need to calculate the stamp duty liability early in the process.
- Consult a Professional: Work with a knowledgeable conveyancer to guarantee you get the most out of the concession process.
- Stay up to date: Stamp duty rates and concession criteria are subject to change, so be sure to stay informed.
3. Home Guarantee Scheme (HGS)
An Australian government program called the Home Guarantee Scheme (HGS) helps qualified homebuyers purchase a property sooner. Housing Australia oversees the Scheme on behalf of the Australian Government. The Scheme offers three kinds of guarantees, and the price cap for each must not exceed $700,000 in Capital City and Regional Centres and must be below $550,000 in regional Qld.
- First Home Guarantee (FHBG)
This allows an eligible home buyer to purchase a home with as little as a 5% down and avoid paying the Lender’s Mortgage Insurance. The FHBG guarantees house loans up to a maximum of 15% of the property’s value.
A modest home may be built or purchased with the help of the FHBG, and the residential property’s worth cannot be greater than the applicable price cap $700,000 in Capital City and Regional Centers.
Eligibility Criteria
To qualify for the scheme, sharing some criteria, these conditions must hold apart from some other conditions
- Apply as an individual or two joint candidates.
- Permanent Australian citizen
- At least 18 years of age.
- Earn up to $125,000 for individuals or $200,000 for joint applications, as specified on the Notice of Assessment.
- Aim to be owner-occupiers of the purchased property.
It is important to check latest and complete list of eligibility criteria whenever you choose to apply
- Regional First House Buyer Guarantee (RFHBG)
The Regional First House Buyer Guarantee (RFHBG) aims to help eligible regional house purchasers purchase a property in their area sooner. Under the RFHBG, Housing Australia guarantees a portion of a qualified rural house buyer’s loan from a Participating Lender. This allows an eligible home buyer to buy a property with as little as 5% down without paying Lender’s Mortgage Insurance.
Eligibility Criteria
To qualify for the scheme, sharing some criteria, these conditions must hold apart from some other conditions :
- Apply as an individual or two joint candidates.
- Permanent resident of Australia
- At least 18 years of age.
- Earn up to $125,000 for individuals or $200,000 for joint applications, as specified on the Notice of Assessment.
- Aim to be owner-occupiers of the purchased property.
- Home buyers who have not previously owned in Australia (including land ownership) or in the ten years before the execution of their home loan.
It is important to check the latest and complete list of eligibility criteria whenever you choose to apply
- Family Property Guarantee (FHG)
The FHG seeks to assist qualifying single parents or single legal guardians of at least one dependent in purchasing a property, whether they are first-time homebuyers or former homeowners. Under the FHG, Housing Australia guarantees a portion of a qualified house buyer’s loan from a Participating Lender. This allows an eligible home buyer to buy a home for as little as a 2% deposit without paying the lender’s mortgage insurance.
Eligibility Criteria
To qualify for the scheme, sharing some criteria, these conditions must hold apart from some other conditions
- Apply as an individual.
- A single parent or single legal guardian of at least one dependent.
- Permanent resident of Australia.
- At least 18 years of age.
- Earn no more than $125,000 per year.
- Should take the full ownership of the purchased property.
- NOT presently owning property or do not intend to own a separate property when the assured property they are purchasing is settled.
It is important to check latest and complete list of eligibility criteria whenever you choose to apply
4. First Home Super Saver Scheme (FHSSS)
The First Home Super Saver (FHSS) program enables you to make personal voluntary contributions to your super fund to help you save for your first house. Concessional contributions are taxed at 15%, typically lower than your marginal income tax rate. Assessable FHSS amounts are also eligible for a 30% FHSS tax offset.
However, you can also withdraw up to $15,000 of your voluntary contributions from any one financial year or a total of $50,000 over several years, plus associated earnings. You do not have to be an Australian citizen or resident for tax purposes to use the FHSS plan. When you’re ready to use the cash to assist in buying a property in Australia, you can submit a request to release the FHSS amount plus associated earnings.
Eligibility Criteria
To qualify for the scheme, sharing some criteria, these conditions must hold apart from some other conditions
- You must be at least 18 years old. That being said, you can contribute to your super fund before turning eighteen.
- You are a first-time home buyer who has never held real estate in Australia, including rental property, vacant land, investment property, or a corporate title interest in land.
- The title to the property you purchase must bear your name.
- You haven’t requested an FHSS release before.
- Even if you’ve owned property in the past, you can still be eligible if it’s determined that you experienced a financial hardship with FHSS.
It is important to check latest and complete list of eligibility criteria whenever you choose to apply
Additional Considerations for First Home Buyers
- Financial Planning and Budgeting
It’s critical to have a comprehensive grasp of your financial status and budget prior to submitting any grant or concession applications. Therefore, you must consider the following:
- Savings and Deposits
Make sure you have enough savings to cover the initial expenses, including the deposit.
- Continuous Expenses
Include recurring expenses like insurance, property upkeep, and mortgage payments in your calculations.
- Consult a Professional
Consulting with a financial advisor or mortgage broker will help you understand the concessions you qualify for and can also guide you through the application process. A competent mortgage broker can also assist you in finding the best mortgage solution for your circumstances,.
- Stay Informed
Government incentives and policies are subject to constant change. Keep yourself updated regarding concessions for first-time homebuyers by visiting official government websites.
Conclusion
Buying your first home in Queensland is an exciting journey, and understanding the available concessions can make a significant difference in your financial well-being. The First Home Owner Grant, First Home Buyer Concession on Stamp Duty, and Home Builder Grant are valuable resources designed to support first-time buyers like you. By familiarizing yourself with the eligibility criteria, application processes, and practical tips outlined in this guide, you can maximize your benefits and take a confident step toward homeownership.
To guarantee a successful and smooth house-buying experience, keep yourself updated on any recent changes to concession rules. To get professional help with this, you can Book a consultation call with us at 1300 GET LOAN or 0456456267. You can also Read our related Articles or CONTACT US.
