Last updated: July 2026
First Home Buyer Scheme Changes in 2025-2026
The last 12 months have brought the biggest shake-up to Australian first home buyer schemes in years. From the FHBG becoming truly open access to the launch of an entirely new federal scheme, here is what has changed and what it means for your home buying plans.
Timeline of changes
October 2025: FHBG Income Caps and Places Removed
This was the single biggest change in years. Before 1 October 2025, the First Home Guarantee was capped at $125,000 income for singles and $200,000 for couples, with a hard limit of 35,000 places per financial year. Many buyers missed out simply because places ran out.
Since 1 October 2025, there is no income cap and no annual places limit. Anyone who has not owned property (or has not owned in the past 10 years) can now use the FHBG regardless of income. This opened the scheme to thousands of buyers who were previously locked out, particularly in Sydney and Melbourne where higher incomes are common.
Before October 2025
- $125k single / $200k couple income cap
- 35,000 places per year
- Lower property price caps
After October 2025
- No income cap
- Unlimited places
- Higher property price caps
October 2025: FHBG Property Price Caps Updated
Alongside the income cap removal, the property price caps were significantly increased in most states. Sydney saw the biggest jump, from $900,000 to $1,500,000.
| State | Capital City | Rest of State |
|---|---|---|
| NSW | $1,500,000 | $800,000 |
| VIC | $950,000 | $650,000 |
| QLD | $1,000,000 | $700,000 |
| SA | $900,000 | $500,000 |
| WA | $850,000 | $600,000 |
| TAS | $700,000 | $550,000 |
| ACT | $1,000,000 | N/A |
| NT | $750,000 (Darwin) | $600,000 |
Note: NSW designates six regional centres that use the capital-city cap — Central Coast, Illawarra, Newcastle and Lake Macquarie, Coffs Harbour–Grafton, Mid North Coast, and Richmond–Tweed. Queensland's Gold Coast and Sunshine Coast, and Victoria's Geelong, are also treated as capital-city-rate regional centres.
The NT cap above split on 1 July 2026 into $750,000 for Darwin and $600,000 for the rest of the Territory (previously a single $600,000). This split applies only to the FHBG — Help to Buy's NT cap remains a single $600,000 territory-wide.
December 2025: Help to Buy Launched
The federal government's Help to Buy shared equity scheme launched on 5 December 2025. It is a fundamentally different type of assistance compared to the FHBG: the government co-owns a portion of your home, reducing the size of your mortgage and your repayments.
- Government buys up to 40% equity in new homes (30% for existing homes)
- Income cap of $103,000 single / $165,000 couple (from 1 July 2026)
- Australian citizens only (permanent residents not eligible)
- Available in every state and territory, with Tasmania joining 9 June 2026
- CBA and Bank Australia at launch, with the participating lender panel growing over time
- 10,000 places per year nationally
- Minimum 2% buyer deposit
Read our full Help to Buy eligibility guide
WA and Tasmania Join Help to Buy
Western Australia passed its enabling legislation and joined the Help to Buy scheme from 22 December 2025, having missed the initial 6-jurisdiction launch cohort. Tasmania was the last jurisdiction to join: its referral legislation received Royal Assent on 5 June 2026, and the scheme became available for Tasmanian property purchases from 9 June 2026. Help to Buy is now available across all states and territories.
What Happened at the 30 June 2026 Deadline
Two benefits had confirmed 30 June 2026 dates attached to them. One was extended, the other lapsed:
QLD $30,000 FHOG — extended, not reduced
The 2026-27 Queensland Budget extended the $30,000 grant a further four years. It continues unchanged for contracts signed from 1 July 2026 and did not revert to $15,000.
See current FHOG amounts by stateTAS Stamp Duty Exemption — lapsed
The 100% stamp duty exemption for first home buyers of established homes up to $750,000 lapsed on 30 June 2026 and was not extended in the Tasmanian FY2026-27 Budget. From 1 July 2026, Tasmanian first home buyers pay full standard duty on established homes.
TAS stamp duty calculator2026-27 Tax Bracket Change
From 1 July 2026, the second tax bracket ($18,201 to $45,000) rate dropped from 16% to 15%. This is a minor change for most buyers, but it has a small impact on FHSS calculations: for income in that bracket, the tax benefit of salary sacrificing drops from 1% (16% minus 15% super tax) to 0% (15% minus 15%).
In practice, this only affects buyers earning under $45,000. If your income is above $45,000, the tax benefit from the FHSS remains unchanged at the higher brackets.
What This Means for You
The removal of FHBG caps is the biggest deal for most buyers. If you earn over $125,000 or were previously locked out by the annual places limit, the FHBG is now available to you with no restrictions.
Help to Buy provides a new option for lower income buyers who want the smallest possible deposit (2%) and the lowest repayments, at the cost of sharing future capital gains with the government.
If you are buying in Tasmania, note that the established-home stamp duty exemption has now lapsed and the FHOG has stepped down to $20,000 — factor full standard duty into your budget. Queensland buyers, by contrast, can rely on the $30,000 FHOG continuing; there is no deadline to plan around there anymore.
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Frequently Asked Questions
What is the biggest change to first home buyer schemes in 2025-2026?
The removal of income caps and annual places limits from the First Home Guarantee (FHBG) on 1 October 2025. Previously capped at $125,000 single / $200,000 couple income with 35,000 places per year, the FHBG is now available to any eligible buyer regardless of income, with no cap on the number of places.
Is Help to Buy available in all states?
Yes. Help to Buy is now available in every state and territory. WA joined the scheme from 22 December 2025 after passing its own enabling legislation, and Tasmania — the last jurisdiction to join — became available on 9 June 2026 following Royal Assent of its referral legislation on 5 June 2026.
Did the QLD $30,000 FHOG expire on 30 June 2026?
No. The 2026-27 Queensland Budget extended the $30,000 First Home Owner Grant a further four years. It continues unchanged for eligible contracts signed from 1 July 2026 onward and did not revert to $15,000.
How did the 2026-27 tax bracket change affect the FHSS?
From 1 July 2026, the second tax bracket ($18,201 to $45,000) dropped from 16% to 15%. This has a minor impact on FHSS calculations for lower income earners: the tax saving from salary sacrificing into super is slightly reduced because the gap between your marginal rate and the 15% super tax rate narrowed by 1 percentage point for income in that bracket.
Sources:
Housing Australia - First Home Guarantee | Housing Australia - Help to Buy | ATO - Tax Rates for Australian Residents | QLD Government - First Home Owner Grant
Disclaimer: This information is general in nature and does not constitute financial, legal, or tax advice. Calculations are estimates only and may not reflect your exact circumstances. Eligibility criteria and dollar amounts may change without notice. Always verify with the relevant government authority, your mortgage broker, or a licensed financial adviser before making decisions.