Last updated: April 2026
Help to Buy Scheme Australia 2026 — How It Works
Help to Buy is a shared equity scheme launched on 5 December 2025 where the Australian Government contributes up to 40% of the purchase price for a new home (or 30% for an existing home). You need as little as a 2% deposit, and your mortgage covers only the remaining portion. This significantly reduces your upfront costs and ongoing repayments, but the government shares in future capital gains proportionally. As a relatively new scheme, lender participation is still expanding and some operational details may evolve.
Key Features
Government contributes up to 40% for new builds, off-the-plan, house-and-land
Government contributes up to 30% for established homes
You need just 2% of the property price as a deposit
Limited to 10,000 places per year nationally
Income Caps
| Buyer Type | Maximum Taxable Income |
|---|---|
| Single | $100,000 |
| Couple / single parent | $160,000 |
Income is assessed from your most recent ATO Notice of Assessment (NOA). If your income exceeds the cap for 2 consecutive years after purchase, you may need to buy back part of the government's equity share.
Property Price Caps
| State | Capital City | Rest of State |
|---|---|---|
| New South Wales | $1,300,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $600,000 |
| Australian Capital Territory | $900,000 | — |
| Northern Territory | $700,000 | $600,000 |
TAS is not yet participating in Help to Buy (enabling legislation introduced March 2026). WA has been participating since January 2026.
Participating Lenders
At launch, only two lenders are participating in Help to Buy:
- Commonwealth Bank of Australia (CBA) — does NOT accept broker applications; you must apply directly through CBA
- Bank Australia — accepts both direct and broker applications
Important Trade-offs
- Capital gains are shared: if your home increases in value, the government gets their proportional share when you sell
- Capital losses are also shared: if the property decreases in value, the government absorbs their share of the loss
- Cannot rent out the property: it must be your principal residence at all times
- Renovations: you can renovate, but the government's equity share doesn't change (you keep the added value from renovations)
- Limited lenders: only CBA and Bank Australia at launch, which may limit product choice and interest rate competition
- Income ongoing cap: if income exceeds the cap for 2 consecutive years, you may need to start buying back the government's share
Help to Buy vs First Home Guarantee
These two schemes cannot be used together, so you need to choose one. The FHBG is generally better if you want full ownership and expect strong capital growth. Help to Buy is better if you need lower repayments and have a lower income. See our detailed comparison.
See which schemes you qualify for
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Frequently Asked Questions
Do I need to be a first home buyer for Help to Buy?
Not necessarily. You must not currently own property in Australia or overseas, but you could have previously owned property. It's available to both first home buyers and previous owners who have sold.
Must I be an Australian citizen?
Yes. Unlike the FHBG which also accepts permanent residents, Help to Buy requires Australian citizenship. Permanent residents are not eligible.
What happens when I sell?
When you sell, the government receives its proportional share of the sale price. For example, if the government contributed 30% and your home increased from $600,000 to $700,000, the government would receive $210,000 (30% of $700,000).
Can I buy back the government's share?
Yes. You can voluntarily buy back the government's equity share at any time (in minimum 5% increments). This is based on a new valuation at the time of buyback.
Source: Housing Australia
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.