What are the First Home Owner Grant and Stamp Duty Concessions?
When buying a first home in Australia, eligible buyers can apply for two main types of financial support: the First Home Owner Grant (FHOG) and stamp duty concessions or exemptions (Stamp Duty Concession or Exemption). These two forms of support can be combined, but the amount you can receive and the form it takes depend entirely on the state or territory where the property is located, and whether the property is a new home or an established home.
The FHOG is a one-off cash grant administered separately by each state and territory government. It is primarily aimed at first home buyers who purchase a new home or enter into a building contract and intend to live in the property. Stamp duty concessions usually take the form of full exemptions or tiered reductions. Some states set a price cap; once the property price exceeds the cap, the concession is reduced or removed. A common prerequisite for both policies is that the applicant must be eligible at the time of purchase and the property must be used as their principal place of residence.
Because each state operates its own scheme, the specific rules in New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory vary. Some states only provide the FHOG for new homes, while others also offer a lower grant for established homes. Some states have a higher stamp duty exemption threshold, while others only provide a partial reduction. Before buying, you should check the current conditions and amounts on the official state government website (usually the state revenue office or treasury department).
Are International Students Eligible?
This is the question that most concerns the Chinese international student community, and the answer is clear: international students holding a Student Visa (subclass 500) are generally not eligible for the FHOG and stamp duty concessions.
The eligibility requirements for both policies are highly consistent. The applicant must be an Australian citizen or permanent resident, at least 18 years old, and neither the applicant nor their spouse can have previously owned a residential property in any Australian state or territory. A student visa is a temporary visa category and does not meet the citizenship or permanent residency requirement. This eligibility determination is strictly based on visa category and immigration status, and is not affected by the length of residence in Australia, tax records, or local study history.
Even if an international student obtains a Temporary Graduate Visa (subclass 485) after completing their studies, this visa is also a temporary visa and does not automatically confer permanent resident status, so they still do not meet the eligibility criteria. Only after formally obtaining permanent residency through pathways such as skilled migration or family reunion will they have the basic eligibility to apply for these two concessions.
For international students who have not yet obtained permanent residency but are considering buying a property, it is important to understand that buying a property on a temporary visa not only means you cannot access the above grants and concessions, but you may also face additional foreign buyer surcharges and stricter approval requirements from the Foreign Investment Review Board (FIRB). These extra costs can significantly increase the total cost of buying a property and should be factored into your budget.
Key Differences Between State Policies
Although international students are currently ineligible, understanding the policy frameworks of each state is still useful for future planning. The following is the basic structure of each state and territory’s policies. All amounts, caps and specific conditions must be verified against the current information published on each state government’s website.
New South Wales provides the FHOG for first home buyers purchasing a new home, and also has stamp duty exemption and concession schemes for different property price brackets. Full exemption is available for properties below a certain threshold; above that, a tiered concession applies, and beyond a further threshold, the concession is completely removed.
Victoria also distinguishes between new and established homes. The FHOG is mainly for new home buyers, and stamp duty concessions have specific thresholds for first home buyers. The state adjusts property value caps relatively frequently, so it is essential to check the latest announcements from the State Revenue Office Victoria before buying.
Queensland has a relatively broad coverage for the FHOG and also differentiates by region. Stamp duty concessions have a specific exemption cap for first home buyers; above the cap, a partial concession is still available but the amount decreases.
Western Australia and South Australia have similar policy structures, both primarily targeting new homes for the grant, with stamp duty concessions applied in tiers based on property price. Both states sometimes offer additional incentives for buying in regional areas.
Tasmania, the Australian Capital Territory and the Northern Territory, due to their smaller market sizes, have relatively stable policies, but the price caps and grant amounts differ significantly from the more populous states. Because of its special administrative status, the Australian Capital Territory has some policy frameworks that differ from state-level governments; buyers should refer to the ACT Revenue Office for accurate information.
A common feature across all state policies is that both the FHOG and stamp duty concessions require the buyer to actually move into the property and continuously reside there for a certain period (usually a continuous 6 months). Failure to do so may result in having to repay the grant or concession amount received. This residency requirement is a compliance condition enforced across all states.
Difference from the Federal Home Guarantee Scheme
When discussing the First Home Owner Grant and stamp duty concessions, it is easy to confuse them with another federal-level policy: the First Home Guarantee. This scheme is administered by the federal government through Housing Australia and allows eligible first home buyers to purchase a property with a deposit as low as 5%, with the government guaranteeing the remaining portion, thereby avoiding Lenders Mortgage Insurance (LMI).
The First Home Guarantee is an independent policy from the FHOG and stamp duty concessions, and they can be used together. However, its eligibility also requires Australian citizenship or permanent residency, so international students cannot apply. Understanding the differences between these three policies and their respective thresholds can help you quickly determine which supports you can combine once your residency status changes.
Things to Confirm Before Buying a Property
Even if you obtain permanent residency in the future, there are still several key things to verify before applying for the First Home Owner Grant and stamp duty concessions.
Identity and eligibility verification: Confirm that you and your spouse have not previously owned a residential property in any Australian state or territory. State governments conduct cross-state checks during the approval process, and concealing previous property ownership records may lead to application rejection and a requirement to repay any amounts already received.
Property type and price: New homes generally attract greater support, while established homes may receive a lower grant or none at all. Whether the property price falls within the applicable concession cap directly determines how much stamp duty can be reduced. This cap varies by state and may be adjusted annually.
Residency obligation: After purchase, you must actually move into the property within the specified period and use it as your principal place of residence. Short-term renting, leaving it vacant, or using it solely as an investment property may trigger a compliance review.
Rules for combining with other concessions: In some states, the FHOG and stamp duty concessions can be combined with the federal First Home Guarantee, but cannot be used simultaneously with certain other state-level housing schemes. Specific combination rules should be checked against the latest information from each state government.
For international students currently on a student visa, the most practical approach is to first understand the policy framework and then initiate the property purchase plan after transitioning to permanent residency. Buying a property involves multiple steps such as loan approval, title registration, and tax filing, each with its own eligibility requirements and timelines. It is recommended that before making any property purchase decision, you directly visit the official website of the state revenue office in your target state or the federal government housing website to obtain the currently effective policy documents, and if necessary, consult a licensed conveyancer or independent legal advisor to ensure you understand all applicable conditions and obligations.
All state government websites provide policy summaries and eligibility self-check tools. These resources are free and publicly available, and are the most direct channel for obtaining authoritative information.