Government Grants and Incentives for First Home Buyers in 2025

Let’s face it—buying your first home in 2025 can feel overwhelming. With interest rates, inflation, and property prices still climbing in many areas, it’s easy to think home ownership is out of reach. But here’s the good news: you don’t have to do it alone.

Whether you’re aiming to buy your first home, a new build, or even start your journey toward an investment property, the government has a range of grants and incentives to help you get started. From upfront support like the First Homeowner Grant, to ongoing savings through stamp duty exemptions, superannuation strategies, and deposit guarantees—there’s something here that could make a real difference.

This article breaks down the key government schemes available in 2025 to help first home buyers—especially in NSW—get on the property ladder faster.

While owning your own home may not feel easy, with the right information and strategy, it’s still very possible.

1. First Home Owner Grant/FHOG (New Homes) – NSW

This grant is designed to help first-time buyers get into the market by providing a one-off $10,000 payment when purchasing or building a brand-new home. It’s especially useful for buyers targeting newly developed properties or house and land packages in emerging suburbs. While the property value cap applies, it can go a long way in easing upfront costs. The key is to meet the eligibility criteria and commit to living in the property for at least 12 months.

• Grant: $10,000
• Eligibility:
  • Must be buying or building a new home (not an existing property)
  • Property value must be up to $600,000 (or $750,000 for house and land packages)
  • Must be an Australian citizen or permanent resident
  • Must live in the home for at least 12 continuous months

How to Apply: Through your lender or the Revenue NSW portal

2. First Home Buyers Assistance Scheme (FHBAS) – NSW

Stamp duty is one of the biggest upfront expenses for home buyers—but this scheme can significantly reduce or eliminate it for first home buyers in NSW. Depending on the value of the property, you may be eligible for a full exemption or partial concession, including on vacant land. This can save you tens of thousands and make it easier to meet lender deposit requirements. It’s a powerful tool if you’re looking to buy in the $650K to $1 million range.

• Stamp Duty Exemptions and Concessions:
  • Full exemption: For homes up to $800,000
  • Concessions: For homes valued between $800,000 and $1 million
• Vacant Land:
  • Full exemption: Up to $350,000
  • Concessions: Between $350,000 and $450,000
• Eligibility:
  • First-time buyers only
  • Must live in the home for at least 12 continuous months

How to Apply: Through your solicitor or via Service NSW

3. First Home Super Saver Scheme (FHSSS)

If you’re struggling to save a deposit the traditional way, the FHSSS offers a tax-effective savings alternative. It allows you to make voluntary contributions to your super and later withdraw those funds to purchase your first home. Because these contributions are taxed at a lower rate, your savings grow faster. It’s a smart strategy for disciplined savers looking to boost their deposit with less tax drag.

• How it Works:
  • Save up to $50,000 of your deposit through voluntary super contributions
  • Tax-effective way to build savings
• Key Benefits:
  • Withdrawals are taxed at a concessional rate
  • Faster savings growth due to lower super tax rate
• Eligibility & Details: Visit the ATO website

4. Home Guarantee Scheme (Federal)

The Home Guarantee Scheme is designed to help first-time buyers, regional buyers, and single parents break into the property market with a lower deposit—without needing to pay Lenders Mortgage Insurance (LMI). Backed by the federal government, this scheme means you could secure a home with as little as 2%–5% deposit. It’s especially helpful for buyers who have steady income but haven’t yet saved the traditional 20% deposit required by most lenders.

• Program Types:
  • First Home Guarantee: Buy with as little as 5% deposit (no LMI)
  • Regional First Home Buyer Guarantee: For eligible buyers in regional areas
  • Family Home Guarantee: Single parents can buy with just 2% deposit

• Administered by: National Housing Finance and Investment Corporation

NSW State Budget 2024–25: What’s New for Home Ownership

The NSW Government announced major housing investments as part of its 2024–25 Budget:

• $5.1 billion to build 8,400 new public homes
• $650.1 million for essential worker housing:
  • $450 million: Key Worker Build-to-Rent program in metro Sydney
  • $200.1 million: Regional housing for health workers
• 30,000 new homes planned on surplus government land

These initiatives aim to ease supply constraints, stabilise the housing market, and support affordable housing solutions across NSW.

The Key Advisors Every First Home Buyer Should Consult Early

While government grants and schemes are a great starting point, they’re only one part of the picture. First home buyers can benefit greatly from getting early advice from specialists who understand the full financial and property landscape. Talking to an experienced mortgage broker can help you understand your borrowing power, compare loan options, and stay informed about lender policies. Similarly, a property-savvy accountant can help you plan your savings, forecast costs, and structure your finances in a tax-effective way. If you’re time-poor or overwhelmed, working with professionals like buyers’ agents and finance specialists can take the pressure off and ensure you’re making confident, informed decisions from day one.

Final Thoughts

Whether you’re a young Australian dreaming of your first home or a parent hoping to help your child take that first step, the property journey in 2025 may feel overwhelming—but it’s not impossible. With the right tools, the right advice, and the right mindset, home ownership can be more than just a dream.

Government grants can give you a much-needed boost—but it’s up to you to take the first step. Use these incentives wisely, build equity early, and stay the course. Talk to your accountant, review your savings, and keep learning. Because home ownership isn’t just a dream—it’s a goal that’s well within reach if you’re willing to work for it.

If you’re unsure where to start, reach out. At Investax, we help everyday Australians turn their property goals into reality—with smart, strategic advice.

Let’s make 2025 the year you take your first step.

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