

Important Tax Time Tips for First Home Buyers
Disclaimer: The following is general advice only, written from the perspective of a Mortgage Broker. Please seek independent tax advice based on your personal circumstances.
Information accurate as of 10 June 2025. Eligibility criteria applies for all grants and schemes.
Planning to Buy Your First Home?
If you're hoping to get into the market with government support, there are some key considerations in the lead-up to 30 June. Your eligibility for grants, concessions and schemes may come down to what happens before the financial year ends.
What Support Is Out There?
When buying your first home, it's important to know that there are different qualifying criteria for each scheme — here’s a quick overview of the three key initiatives:
- First Home Buyer Grants (State Government): Typically cash grants for brand-new properties. Amounts vary by state.
- Stamp Duty Concessions (State Government): Partial or full discounts of stamp duty, depending on the property and state legislation.
- First Home Guarantee Scheme (Federal Government): Allows you to buy with a 5% deposit and avoid paying Lenders Mortgage Insurance (LMI), if you qualify.
Case Study: You buy a brand-new home in Brisbane for $1,000,000 in June. It’s never been lived in, so you are eligible for a full stamp duty concession (woohoo!), which is a saving of $30,850 if the property had already been lived in. Even though you qualify for the stamp duty concession, you would not be eligible for the Queensland $30,000 first homeowner grant because the purchase price is over $750,000; nor would you be eligible for the Federal First Home Guarantee Scheme because the purchase price is over $700,000.
Sweet Spot: Right now in Queensland, a brand-new build under $700,000 could make you eligible for all three supports.
The Federal First Home Guarantee Scheme (FHGS)
In this article, I’m going to focus on the First Home Guarantee Scheme which is backed by the Federal Government. In my view, this is the most powerful support available to first home buyers.
How It Currently Works:
- Buy with just a 5% deposit.
- The government guarantees an additional 15%, removing the need for LMI — which costs the average first home buyer $23,000.
- More than 200,000 Australians have already used the Scheme.
Current Criteria:
- Places reset 1 July each year.
- You must earn less than:
- $125,000 (single)
- $200,000 (couple)
- Eligibility is assessed using your most recent ATO Notice of Assessment. There are property price caps.
To apply for the FY25/26 Scheme, you’ll need to provide your FY24/25 Notice of Assessment (usually available about 2 weeks after lodging your tax return).
Examples:
- Jody was recently promoted to $160,000 but her last Notice of Assessment shows $124,000 — she qualifies.
- John recently dropped his hours and expects to earn $122,000 this year — but his last Notice says $127,000 — he doesn't qualify.
👉 First Home Guarantee Scheme Website
What’s Changing in 2026?
Labor has announced major proposed changes to the Scheme as an election promise — but they won't kick in until 1 January 2026, so current caps still apply until then.
Proposed changes:
- No income caps
- No cap on number of places
- Price cap lifted from $700,000 to $1,000,000 (in QLD metro areas)
These changes will open the market to more buyers — and likely push up prices. That’s why acting before January 2026 could be a strategic advantage.
What Should You Do Right Now?
Check your year-to-date income via your ATO Portal.
If you’re getting close to the income caps, take note:
- How many pays are left before 30 June?
- Will you go over $125,000 (single) or $200,000 (couple)?
- Would you be frustrated to miss out on the Scheme and possibly delay your purchase by a further 6 months?
A Little-Known Strategy: FHSS Scheme
Speak to your tax specialist or financial planner before 20 June about the First Home Super Saver (FHSS) Scheme. This could allow you to time to make personal voluntary contributions to super (and clear before 30 June), then withdraw funds later to purchase your first home. The added bonus? It may help reduce your taxable income — which could keep you under the FHGS income caps.
More on FHSS here:
Hidden Savings?
If you work in industries like government or education, your employer may already be helping you to salary sacrifice into super. These personal contributions could be accessible through FHSS — you can check by logging into MyGov and requesting a Determination Letter via ATO Online Services.
In Summary
If you’re serious about buying your first home this year:
- Know what you qualify for now
- Act before 20 June to secure your eligibility; any personal voluntary super contributions will need time to clear before 30 June
- Talk to a broker and a tax advisor — especially about the FHSS Scheme
- Understand that proposed changes will increase competition from January 2026
About Cara Haynes
Cara has worked in mortgage broking since 2012. She holds a Bachelor of Business from QUT and a Diploma of Finance & Mortgage Broking Management. Her team is based out of Wavell Heights in Brisbane and specialise in helping first home buyers navigate their way into the market.