First-Home Buyer Costs in Australia 2026: Stamp Duty, FHOG, and Deposit Explained

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For a first-home buyer in Australia during the 2026–27 financial year, the total upfront cost of buying a home comprises three main components: the deposit, the stamp duty (which may be fully or partially exempt), and any First Home Owner Grant offset. On a $600,000 property, a first-home buyer in NSW or Victoria could face upfront costs as low as approximately $25,000 after grants — representing a 5% deposit under the federal Home Guarantee Scheme, with the stamp duty fully exempt and the FHOG contributing $10,000. In the Northern Territory, the same $600,000 new home would cost approximately $32,657 in stamp duty alone, offset by a $50,000 HomeGrown grant, resulting in a net positive on those two line items. At the $800,000 level, the picture changes significantly: NSW and the ACT remain stamp-duty-free for first-home buyers, while Victoria imposes a duty of $43,070 with no exemption available above $750,000. Queensland offers the most generous combination for new-home buyers, with a full stamp duty exemption on new homes at any price and a $30,000 FHOG on new homes under $750,000. The following analysis breaks down the deposit, duty, and grant components across all eight jurisdictions, using both a $600,000 and an $800,000 property as reference points.

The Three Components of Upfront Cost

1. Deposit

The deposit is the cash contribution a buyer puts towards the purchase price, with the remainder funded by a home loan. The standard deposit is 20% of the property value — $120,000 on a $600,000 home and $160,000 on an $800,000 home — which avoids Lender’s Mortgage Insurance. Buyers who cannot meet the 20% threshold may still obtain a loan with a smaller deposit, typically incurring LMI, which can add several thousand dollars to the upfront cost. The federal government’s Home Guarantee Scheme allows eligible first-home buyers to purchase with a deposit as low as 5% ($30,000 on a $600,000 home, $40,000 on an $800,000 home) without paying LMI, as the government guarantees the remaining 15% to the lender. The scheme is subject to annual caps on the number of places available.

2. Stamp Duty

Stamp duty is a state or territory tax on property transfers, payable by the buyer at settlement. For first-home buyers, most jurisdictions offer a full or partial exemption depending on the property value and whether the home is new or established. The exemption thresholds vary significantly, and a property that is duty-free in one state may attract tens of thousands of dollars of duty in another. For a detailed comparison of standard stamp duty rates across all states, see the Australian stamp duty comparison for 2026. For the specific surcharges that apply to non-resident purchasers, see foreign buyer stamp duty across Australian states.

3. First Home Owner Grant

The FHOG is a cash payment to eligible first-home buyers, typically for the purchase or construction of a new home. It is not a rebate on stamp duty — it is a separate payment that can be used towards the deposit or other purchase costs. Grant amounts range from zero in the ACT to $50,000 in the Northern Territory. Each state has its own eligibility criteria, including property value caps and residency requirements.

Worked Example: $600,000 Property

At the $600,000 price point, which is within or close to the first-home stamp duty exemption threshold in most jurisdictions, a first-home buyer’s upfront costs can be substantially lower than those of a repeat buyer. The following figures assume the buyer is an Australian citizen or permanent resident, purchasing as their principal place of residence, and eligible for all available concessions.

New South Wales: Stamp duty is fully exempt for properties up to $800,000, so the duty is $0. The FHOG of $10,000 is available for new homes up to $600,000. With a 5% deposit under the Home Guarantee Scheme ($30,000) and after receiving the $10,000 grant, the net upfront cost is approximately $20,000. For an established home, the FHOG is not available, and the deposit remains $30,000, giving a net cost of $30,000.

Victoria: Stamp duty is fully exempt for first homes up to $600,000, so the duty is $0. The FHOG of $10,000 applies to new homes up to $750,000. With a 5% deposit, the net cost is approximately $20,000 for a new home and $30,000 for an established home, subject to the 5% deposit scheme cap.

Queensland: Stamp duty is fully exempt on new homes at any price, and on established homes up to $700,000. Duty is $0 for both. The FHOG is $30,000 for new homes under $750,000 — the largest FHOG outside the NT. For a new home, a 5% deposit of $30,000 minus the $30,000 grant yields a net upfront cost of approximately $0 in deposit and duty combined (noting that conveyancing and other fees still apply). For an established home, the $30,000 deposit applies with no grant, giving a net cost of $30,000.

Western Australia: The first-home duty exemption applies fully up to $500,000, phasing out to $700,000 in the Perth and Peel regions. At $600,000, a partial concession applies, reducing the duty to approximately $8,000 to $10,000. The FHOG of $10,000 is available for new homes. With a 5% deposit, the net upfront cost is approximately $28,000–$30,000 for a new home and $38,000–$40,000 for an established home after the partial duty concession.

South Australia: Full stamp duty exemption applies to new homes and vacant land at any price, but not to established homes. For a $600,000 new home, duty is $0. The FHOG is up to $15,000 for new homes. With a 5% deposit, the net cost is approximately $15,000 for a new home. For an established home, the standard duty of approximately $26,830 applies with no FHOG, giving a total of approximately $56,830 including the 5% deposit.

Tasmania: From 1 July 2026, no stamp duty exemption applies to established-home purchases. For a $600,000 established home, the standard duty of approximately $20,935 applies. The FHOG of $10,000 is available for new homes. For an established home, the 5% deposit plus duty totals approximately $50,935. For a new home, the $10,000 grant offsets part of the deposit.

Australian Capital Territory: The Home Buyer Concession Scheme provides a full stamp duty exemption up to a dutiable value of $1,020,000, with no income test from 1 July 2026. Duty is $0. There is no FHOG in the ACT. With a 5% deposit, the net upfront cost is $30,000 regardless of whether the home is new or established.

Northern Territory: The NT offers no stamp duty concession for first-home buyers, and duty is calculated under the formula D = (0.06571441 × V²) + 15V for properties up to $525,000. At $600,000, the duty falls in the tiered range above $525,000 and is approximately $32,657. The HomeGrown grant of $50,000 applies to new homes at any price. For a new home, $30,000 deposit plus $32,657 duty minus $50,000 grant yields a net cost of approximately $12,657. For an established home without the grant, the cost is approximately $62,657. For a detailed explanation of the NT’s formula and HomeGrown grant, see NT stamp duty 2026-27.

Worked Example: $800,000 Property

At $800,000, the picture shifts. Several jurisdictions exceed their first-home stamp duty exemption thresholds, and the FHOG becomes unavailable in most states due to price caps.

New South Wales: Full duty exemption up to $800,000, so duty is $0 at exactly $800,000. The FHOG is not available above $600,000. With a 5% deposit of $40,000, the total upfront cost is $40,000 plus conveyancing and other fees.

Victoria: The first-home duty exemption phases out at $750,000, so an $800,000 property attracts the full standard duty of $43,070. The FHOG is not available above $750,000. Total upfront cost including a 5% deposit is approximately $83,070.

Queensland: For a new home, stamp duty is $0 regardless of price. The FHOG is not available above $750,000 for new homes. Total with a 5% deposit is $40,000. For an established home, the first-home concession phases out at $800,000, and a partial concession may still apply at exactly $800,000, reducing the standard duty of $29,025 towards zero.

Western Australia: The first-home duty exemption phases out at $700,000–$750,000 depending on the region. At $800,000, the full standard duty of $32,316 applies. Total with a 5% deposit is approximately $72,316.

South Australia: For a new home, stamp duty is $0. The FHOG is up to $15,000 for new homes, though the precise value cap should be confirmed with RevenueSA. With a 5% deposit, the cost is approximately $25,000 for a new home after the grant. For an established home, standard duty of $37,830 applies, with a total of approximately $77,830.

Tasmania: No first-home exemption applies. Standard duty is $31,185. Total with a 5% deposit is approximately $71,185.

Australian Capital Territory: Full HBCS exemption up to $1,020,000. Duty is $0. No FHOG. Total with a 5% deposit is $40,000.

Northern Territory: Standard duty of approximately $40,000 applies. The HomeGrown grant of $50,000 is available for new homes. For a new home, the net cost is approximately $30,000 ($40,000 deposit + $40,000 duty – $50,000 grant). For an established home, the cost is approximately $80,000.

Additional Upfront Costs

Beyond the deposit, stamp duty, and FHOG, first-home buyers should budget for several ancillary costs that are payable at or before settlement:

  • Conveyancing or legal fees: Typically $1,200 to $2,500 for a standard residential purchase, covering the contract review, title search, settlement attendance, and registration of the transfer.
  • Building and pest inspection: $400 to $800 for a combined report. A building inspection identifies structural defects, while a pest inspection checks for termite activity and timber damage.
  • Loan application and settlement fees: Depending on the lender, these may range from zero to $600. Some lenders waive application fees for first-home buyers.
  • Lender’s Mortgage Insurance: If the deposit is less than 20% and the buyer is not using the Home Guarantee Scheme, LMI can cost several thousand dollars. The premium is typically capitalised into the loan.
  • Moving costs and utility connections: $500 to $2,000 depending on distance and volume.

Taken together, these ancillary costs typically add $4,000 to $8,000 to the upfront outlay, above and beyond the deposit and duty obligations.

Frequently Asked Questions

Can I buy a home with only 5% deposit?

Yes, through the federal Home Guarantee Scheme, eligible first-home buyers can purchase with a 5% deposit without paying Lender’s Mortgage Insurance. The scheme has an annual cap on places and requires the buyer to be an Australian citizen or permanent resident, to occupy the property as their principal place of residence, and to meet the lender’s credit criteria. The government guarantees up to 15% of the property value to the lender. Outside this scheme, a deposit below 20% typically triggers LMI, which increases the total cost.

In which state can a first-home buyer get the lowest upfront cost?

Queensland offers the most favourable combination for a new-home buyer: zero stamp duty on new homes at any price, a $30,000 FHOG on new homes under $750,000, and access to the 5% deposit scheme. On a $600,000 new home, a Queensland first-home buyer could face a net upfront cost close to zero on the deposit and duty components. The ACT provides the best outcome for established-home buyers, with a full exemption up to $1,020,000 and no income test.

Does the FHOG count towards my deposit?

Yes. The First Home Owner Grant is a cash payment that can be applied towards the deposit, reducing the amount of savings the buyer needs to contribute from their own funds. Most lenders recognise the FHOG as part of the buyer’s contribution when assessing the loan application.

What changed in Tasmania for first-home buyers in July 2026?

Tasmania’s 100% stamp duty exemption on established homes up to $750,000 was only available for settlements from 18 February 2024 to 30 June 2026. From 1 July 2026, this exemption has lapsed, and first-home buyers purchasing an established home in Tasmania pay the standard duty. New-home buyers can still access the $10,000 FHOG.

How much do conveyancing and other fees add to the total?

Conveyancing, building and pest inspection, and loan fees typically add $4,000 to $8,000 to the upfront cost. These are payable regardless of whether stamp duty is exempt and should be budgeted separately from the deposit and duty amounts discussed above.

Data Sources and Currency

This article is based on first-home buyer concessions, FHOG rules, and stamp duty rates published by the revenue offices of each state and territory, and the Home Guarantee Scheme administered by Housing Australia. Key sources include the First Home Buyers Assistance Scheme (Revenue NSW), the First Home Buyer Duty Exemption (SRO Victoria), the First Home Concession (Queensland Revenue Office), the Home Buyer Concession Scheme (ACT Revenue Office), the HomeGrown Grant (NT Territory Revenue Office), and the Home Guarantee Scheme (Housing Australia).

Data current as at July 2026. Concession thresholds, grant amounts, and scheme rules are subject to change. Verify all figures with the relevant state or territory revenue office and your lender before making a purchase decision. For the broader income tax environment affecting Australian home buyers in FY2026-27, see Australia income tax rates 2026-27.

Disclaimer

This article provides general information only and does not constitute financial, legal, or tax advice. Stamp duty liability, grant eligibility, and deposit requirements depend on individual circumstances including the exact property value, the buyer’s citizenship or residency status, the nature of the property, and the lender’s credit criteria. Confirm all figures and eligibility with the relevant state or territory revenue office, a licensed conveyancer, and your lender. Readers seeking personalised financial advice may consult a licensed mortgage broker or registered financial adviser.