Last updated: July 2026
Help to Buy Eligibility Guide 2026
Help to Buy is the Australian Government's shared equity scheme where the government contributes up to 40% of the purchase price for a new home (or 30% for an existing home). You need just a 2% deposit, but there are strict eligibility rules around citizenship, income, and property type. This guide covers every requirement so you can check whether you qualify before you apply.
Eligibility at a Glance
The following table summarises all the eligibility requirements for Help to Buy:
| Requirement | Detail |
|---|---|
| Citizenship | Australian citizen only (permanent residents not eligible) |
| Age | 18 years or older |
| Income cap (single) | $103,000 taxable income (previous FY) |
| Income cap (couple / single parent) | $165,000 combined taxable income (previous FY) |
| Property ownership | Must not currently own property in Australia or overseas |
| Residence | Must live in the property as principal place of residence |
| Participating states | All states and territories (NSW, VIC, QLD, SA, WA, TAS, ACT, NT) |
| Lenders | CBA (direct only), Bank Australia (direct or broker), or Teachers Mutual Bank Limited's 4 brands - Teachers Mutual Bank, Health Professionals Bank, Firefighters Mutual Bank, UniBank (direct only until 6 Oct 2026, then also broker) - panel growing |
| Minimum deposit | 2% of the property value |
| Annual places | 10,000 nationally |
Income Cap Details
Your eligibility is based on your taxable income from the previous financial year, as shown on your ATO Notice of Assessment (NOA). If you are applying in the 2026-27 financial year, the ATO will look at your 2025-26 income. The thresholds are indexed on 1 July each year — the caps below took effect on 1 July 2026, up from $100,000 and $160,000 previously.
Single buyer
$103,000
Maximum taxable income
Couple or single parent
$165,000
Combined maximum taxable income
The income cap is based on taxable income, not gross income. This means salary sacrifice arrangements, deductible expenses, and superannuation contributions can reduce your assessable income below the cap. If you are close to the threshold, speak with a tax professional about your options.
Property Price Caps by State
Each state has different property price caps for capital cities and regional areas. The property you purchase must be at or below the relevant cap:
| State | Capital City | Rest of State |
|---|---|---|
| NSW | $1,300,000 | $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 | $600,000 | $600,000 |
Tasmania became the eighth and final jurisdiction to join Help to Buy, with the scheme available for TAS property purchases from 9 June 2026. Help to Buy is now available in every state and territory. Check Housing Australia for the latest property price caps for your area.
Government Equity Share
The amount the government contributes depends on whether you are buying a new or existing home:
New home
Up to 40%
Government equity share for new builds, off-the-plan, and house-and-land packages
Existing home
Up to 30%
Government equity share for established homes
With a 2% deposit and 40% government equity on a new home, your mortgage covers the remaining 58%. On a $700,000 new build, that means a mortgage of $406,000 instead of $686,000, significantly reducing your repayments.
What Makes You Not Eligible
You will not qualify for Help to Buy if any of the following apply:
- You are a permanent resident, not an Australian citizen
- Your taxable income exceeds $103,000 (single) or $165,000 (couple) based on your most recent ATO Notice of Assessment
- You currently own property anywhere in Australia or overseas (including investment property, inherited property, or property held through a trust or company)
- You want to use a lender outside the current Help to Buy panel (check firsthomebuyers.gov.au for the up-to-date list)
- You want to rent out the property or use it as an investment
- You are under 18 years of age
Key Things to Know
Help to Buy comes with ongoing obligations and trade-offs that are important to understand before you commit:
- Shared gains and losses: when you sell, the government receives its proportional share of the sale price. If the property increases in value, they share the gain. If it decreases, they share the loss.
- Two-year income trigger: if your income exceeds the cap for two consecutive financial years after purchase, you may be required to start buying back the government's equity share.
- Limited places: only 10,000 places are available per year nationally. Places may run out, especially in high-demand periods.
- Limited lenders: at launch, only CBA and Bank Australia participated. CBA does not accept broker applications for Help to Buy. By mid-2026 the panel had grown to include Teachers Mutual Bank Limited's four brands (Teachers Mutual Bank, Health Professionals Bank, Firefighters Mutual Bank, UniBank), with more lenders expected through the year.
- Principal residence only: you must live in the property. You cannot rent it out, even temporarily.
- Buyback in 5% increments: you can voluntarily buy back the government's share at any time, but only in minimum 5% increments based on a current valuation.
Help to Buy vs First Home Guarantee
These two federal schemes cannot be used together. Here is how they compare:
| Feature | Help to Buy | FHBG |
|---|---|---|
| How it works | Government co-owns your home | Government guarantees your loan (no LMI) |
| Minimum deposit | 2% | 5% |
| Ownership | Shared (you + government) | 100% yours |
| Income cap | $103k / $165k | No cap (since Oct 2025) |
| Citizenship | Citizens only | Citizens and PRs |
| Annual places | 10,000 | Unlimited (since Oct 2025) |
| Capital gains | Shared with government | 100% yours |
| Lenders | 3 banking groups (CBA, Bank Australia, Teachers Mutual Bank group) - growing | ~49 participating lenders |
| States | All states and territories | All states |
In general, the FHBG is better if you want full ownership, expect strong capital growth, and can afford the 5% deposit. Help to Buy is better if you need the lowest possible deposit and repayments, and are comfortable sharing equity with the government. For a detailed comparison, see our FHBG vs Help to Buy comparison.
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Frequently Asked Questions
Can permanent residents use Help to Buy?
No. Help to Buy is only available to Australian citizens. Permanent residents are not eligible. This is different from the First Home Guarantee, which accepts both citizens and permanent residents.
What happens if my income goes over the cap after I buy?
If your taxable income exceeds the Help to Buy income cap for two consecutive financial years after purchase, you may be required to start buying back the government's equity share. This is assessed using your ATO Notice of Assessment each year.
Can I use Help to Buy and the First Home Guarantee together?
No. Help to Buy and the FHBG are mutually exclusive. You must choose one or the other. Help to Buy suits buyers who want lower repayments and are comfortable sharing equity. The FHBG suits buyers who want full ownership from day one.
Is Help to Buy available in Tasmania?
Yes. Tasmania's enabling 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 in all eight states and territories, with Tasmania the last to join after WA came on board in late December 2025.
Sources:
Housing Australia - Help to Buy | Housing Australia - First Home Guarantee | ATO - Taxable Income
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.