First Home Buyer Costs Australia 2026: Stamp Duty, FHOG, Deposit & Total Purchase Breakdown

Direct answer: The total cost of buying a first home in Australia in 2026 depends heavily on which state you buy in and whether the property is new or existing. Stamp duty can range from zero (QLD new homes, SA off-the-plan, some NSW/VIC purchases under caps) to tens of thousands of dollars. The First Home Owner Grant (FHOG) varies from $0 in the ACT to $50,000 in the Northern Territory. Combined with a 20% deposit, conveyancing, LMI and inspection costs, first-home buyers need a clear state-by-state view to budget accurately.

Data note: The stamp duty concessions, FHOG amounts and thresholds in this article reflect state and territory revenue office rules as at July 2026. NSW First Home Buyer Assistance Scheme (FHBAS) thresholds, Victorian duty concession caps, Queensland's uncapped new-home exemption (from 1 May 2025), South Australian off-the-plan relief (from 13 February 2025), Tasmanian expiration of the established-home exemption (30 June 2026), ACT's Home Buyer Concession Scheme (HBCS) with income test removed from 1 July 2026, and the Northern Territory's HomeGrown grant replacing the old FHOG are all current as at the writing date. Foreign buyer surcharges are noted per state. All dollar amounts are in Australian dollars.

The upfront cost stack: what every first-home buyer pays

When you buy a first home, the purchase price is only one number. The total upfront cost includes:

1. Deposit (typically 20% of the purchase price to avoid LMI, though 5% to 10% deposits are possible with LMI or a government guarantee scheme)
2. Stamp duty (also called transfer duty) — the largest variable cost, with concessions available for first-home buyers in every state
3. Lenders' mortgage insurance (LMI) — required for deposits below 20%, typically a one-off premium of $5,000 to $30,000 depending on LVR and loan size
4. Conveyancing or legal fees — typically $1,000 to $2,500 including searches and disbursements
5. Building and pest inspection — typically $400 to $800 for a standard house, higher for large or complex properties
6. Council and water rate adjustments at settlement
7. Moving costs and connection fees

The First Home Owner Grant (FHOG) offsets some of these costs, but only for new or substantially renovated homes in most states. Existing (established) homes generally do not qualify for the FHOG. Stamp duty concessions, by contrast, are available for both new and existing homes in most states, though the rules differ.

Stamp duty concessions: state-by-state guide

Stamp duty is the single largest variable in the first-home purchase cost. The concession available can mean the difference between paying zero duty and a bill of $30,000 or more. Here is the position in each state and territory as at July 2026.

New South Wales

The First Home Buyer Assistance Scheme (FHBAS) provides full stamp duty exemption for both new and existing homes valued up to $800,000. A concessional (partial) rate applies for properties between $800,001 and $1,000,000, phasing out as the price approaches $1 million. First-home buyers purchasing above $1 million receive no stamp duty concession in NSW.

The NSW FHOG is $10,000 for new homes valued up to $600,000. The grant applies to new construction, off-the-plan purchases and substantially renovated homes.

NSW applies a foreign buyer surcharge of 9% on residential property purchases, which applies in addition to the standard transfer duty and cannot be offset by FHBAS concessions.

For a first-home buyer purchasing a new $700,000 home in NSW: stamp duty is fully exempt under FHBAS, the FHOG of $10,000 is receivable, and the upfront cost stack (excluding deposit) is roughly conveyancing plus inspections minus the FHOG — a net positive position from non-deposit costs.

Victoria

Victoria exempts first-home buyers from stamp duty on both new and existing homes valued up to $600,000. A concessional rate applies for properties between $600,001 and $750,000. Properties above $750,000 receive no first-home buyer stamp duty concession in Victoria.

The Victorian FHOG is $10,000 for new homes valued up to $750,000. The grant is available for new construction, off-the-plan purchases and homes that have been substantially renovated.

Victoria applies a foreign buyer surcharge of 8% on residential property.

Victoria's $600,000 exemption threshold is lower than NSW's $800,000, which means a first-home buyer purchasing a $700,000 existing home pays no stamp duty in NSW but pays concessional duty in Victoria. The difference can be material in metropolitan Melbourne where median unit and house prices sit above the exemption threshold in many suburbs.

Queensland

Queensland offers the most generous stamp duty treatment for first-home buyers of new homes. From 1 May 2025, first-home buyers purchasing a new home or vacant land pay no transfer duty — with no price cap. This is the only uncapped new-home stamp duty exemption in Australia for first-home buyers.

For existing (established) homes, Queensland exempts first-home buyers on properties valued up to $700,000, with a concessional rate phasing out at $800,000. Properties above $800,000 receive no first-home buyer stamp duty concession.

The Queensland FHOG is $30,000 — the highest of any state — for new homes valued under $750,000. Combined with the uncapped new-home duty exemption, a Queensland first-home buyer purchasing a new home below $750,000 pays zero stamp duty and receives $30,000 in grant funds.

Queensland applies a foreign buyer surcharge of 8%.

Western Australia

WA exempts first-home buyers from stamp duty on homes valued up to $500,000, with a concessional rate phasing out at $700,000 for metropolitan and Peel region properties, and $750,000 for regional properties. Vacant land is exempt up to $350,000, phasing to $450,000.

The WA FHOG is $10,000 for new homes. WA applies a foreign buyer surcharge of 7%.

WA's $500,000 full exemption threshold means many Perth-metro first-home buyers purchasing a house may pay some duty, but unit and apartment buyers are more likely to fall within the exemption band.

South Australia

South Australia introduced the most significant first-home buyer stamp duty reform of any state, effective from 13 February 2025. First-home buyers purchasing a new home, off-the-plan property or vacant land receive full stamp duty relief with no price cap. This mirrors Queensland's approach for new homes but is restricted to new construction, off-the-plan and land — existing homes are not eligible.

For existing homes, no first-home buyer stamp duty concession applies in South Australia.

The SA FHOG is up to $15,000 for new homes. SA applies a foreign buyer surcharge of 7%.

SA's policy creates a strong incentive for first-home buyers to choose new construction or off-the-plan purchases. An existing-home buyer in SA pays full stamp duty, which on a $600,000 home is approximately $29,000 — a substantial cost differential versus the new-home path.

Tasmania

Tasmania's established-home stamp duty exemption — which provided 100% relief on homes valued up to $750,000 — expired on 30 June 2026. From 1 July 2026, first-home buyers purchasing an existing home in Tasmania pay full stamp duty. This is a material change from the prior year and increases the upfront cost for TAS first-home buyers by tens of thousands of dollars.

The Tasmanian FHOG remains at $10,000 for new homes.

Tasmania applies a foreign buyer surcharge of 8%.

Tasmanian first-home buyers in 2026-27 should focus on new homes if they want to minimise duty, as the established-home exemption has lapsed. The FHOG at $10,000 partially offsets costs but is modest relative to stamp duty on a typical existing home.

Australian Capital Territory

The ACT's Home Buyer Concession Scheme (HBCS) provides full stamp duty exemption for properties valued up to $1,020,000, with a partial concession for properties above that threshold. From 1 July 2026, the ACT removed the income test that previously restricted eligibility — the HBCS is now available to first-home buyers regardless of income, provided the purchase price is within the concession threshold.

The ACT has no FHOG — it was abolished in 2019.

The ACT does not apply a foreign buyer surcharge on conveyance (transfer) duty, though foreign buyers are subject to the standard land tax surcharge rules through the ACT Revenue Office.

The ACT's $1,020,000 exemption threshold is the highest of any jurisdiction, reflecting Canberra's higher median property prices. The removal of the income test from 1 July 2026 means more ACT first-home buyers will qualify for the concession than in prior years.

Northern Territory

The Northern Territory replaced the old FHOG ($10,000) with the HomeGrown grant of $50,000 — the largest first-home buyer grant in Australia. The HomeGrown grant is available to both first-home buyers and previous owners who have not owned property in the NT for at least the preceding 12 months. A secondary program, FreshStart, provides $30,000 for previous owners returning to the NT market.

NT applies formula-based stamp duty with no specific first-home buyer concession beyond the general principal place of residence rebate available to all owner-occupiers. There is no foreign buyer surcharge on stamp duty in the NT.

The $50,000 HomeGrown grant significantly reduces the net cost of purchasing in the NT, though property prices in Darwin and regional centres must be assessed on their own merits — the grant is generous but does not replace due diligence on the property and location.

FHOG at a glance: who gets what in 2026

1. NSW · $10,000 (new homes up to $600,000)
2. VIC · $10,000 (new homes up to $750,000)
3. QLD · $30,000 (new homes under $750,000)
4. WA · $10,000 (new homes)
5. SA · Up to $15,000 (new homes)
6. TAS · $10,000 (new homes)
7. ACT · $0 (FHOG abolished)
8. NT · $50,000 (HomeGrown, new or existing, available to first-home buyers and returning residents)

The FHOG is exclusively or primarily for new homes in every state other than the NT, where HomeGrown applies to both new and existing properties. This means the vast majority of first-home buyers purchasing an existing home receive stamp duty concessions (where available) but no cash grant. The exception is SA, where existing-home buyers also receive no stamp duty concession — the SA system is strongly tilted toward new construction.

The deposit: 20% versus low-deposit pathways

A 20% deposit avoids LMI and gives the borrower the widest choice of lenders and rates. On a $700,000 purchase, a 20% deposit is $140,000. This is the largest single component of the upfront cost for most first-home buyers and typically takes years of saving to accumulate.

Low-deposit pathways include:

1. A 10% deposit ($70,000 on $700,000) with LMI, which adds roughly $8,000 to $14,000 in LMI premium depending on loan size and LVR
2. A 5% deposit ($35,000 on $700,000) with LMI, which adds a larger premium — typically $18,000 to $25,000 — and may be subject to stricter serviceability assessment
3. The federal First Home Guarantee (FHBG) scheme, which allows eligible first-home buyers to purchase with a 5% deposit without paying LMI, but is subject to price caps that vary by state and region
4. The Family Home Guarantee for single parents, with a 2% deposit and no LMI under specific eligibility criteria

LMI premiums rise exponentially as the deposit falls below 20%. A 5% deposit borrower on a $700,000 home may pay LMI of $20,000 or more, capitalised into the loan. This increases the loan amount and monthly repayment, and the higher LVR limits lender choice. The trade-off is speed of entry versus total cost over the life of the loan.

Conveyancing, inspections and hidden settlement costs

Beyond the headline costs of deposit and stamp duty, the upfront purchase stack includes several smaller but essential items:

1. Conveyancing or solicitor fees · $1,200 to $2,500 including title searches, settlement attendance and disbursements
2. Building inspection · $400 to $700 for a standard house report
3. Pest inspection · $200 to $400, often bundled with the building inspection
4. Council and water rate adjustments at settlement · typically $200 to $600 depending on the timing within the rating period
5. Loan application and settlement fees · some lenders charge establishment fees of $200 to $600, though many waive these for new purchases
6. Home and contents insurance from settlement date · typically $600 to $1,500 per year

These costs collectively add $2,500 to $5,000 to the upfront bill. They are unavoidable and should be budgeted as part of the total funds-to-complete calculation.

Putting it together: sample purchase scenarios

Scenario 1: New home in Queensland, $650,000 purchase price

A first-home buyer in QLD purchasing a new house for $650,000 would pay:

1. Zero stamp duty (QLD new-home uncapped exemption)
2. FHOG of $30,000 receivable after settlement
3. 20% deposit of $130,000
4. Conveyancing and inspections of approximately $2,500
5. Total upfront funds required (deposit plus costs minus FHOG) · approximately $102,500 — lower than the deposit alone because the FHOG offsets most non-deposit costs

Scenario 2: Existing home in Victoria, $700,000

A first-home buyer in VIC purchasing an existing home for $700,000 would pay:

1. Concessional stamp duty (above $600,000 threshold but below $750,000) — approximately $8,000 to $12,000 depending on the phasing formula
2. No FHOG (not a new home)
3. 20% deposit of $140,000
4. Conveyancing and inspections of approximately $2,500
5. Total upfront funds required · approximately $150,500 to $154,500

Scenario 3: Existing home in Tasmania, $550,000 (post 30 June 2026)

A first-home buyer in TAS purchasing an existing home after the exemption expired would pay:

1. Full stamp duty on $550,000 — approximately $21,000
2. No FHOG (not a new home)
3. 20% deposit of $110,000
4. Conveyancing and inspections of approximately $2,500
5. Total upfront funds required · approximately $133,500

This illustrates the effect of the Tasmanian established-home exemption expiry: a buyer who made the same purchase in June 2026 would have saved approximately $21,000 in stamp duty.

Scenario 4: New home in NSW, $780,000

A first-home buyer in NSW purchasing a new home for $780,000 would pay:

1. Zero stamp duty (under $800,000 FHBAS threshold)
2. No FHOG (purchase price above $600,000 FHOG cap)
3. 20% deposit of $156,000
4. Conveyancing and inspections of approximately $2,500
5. Total upfront funds required · approximately $158,500

This shows that the NSW FHOG cap of $600,000 can be a binding constraint — a buyer choosing a new home at $780,000 gets the stamp duty exemption but misses the $10,000 FHOG.

State-by-state strategy: where to focus

For first-home buyers with flexibility about which state to purchase in, the 2026 policy landscape offers materially different outcomes:

Queensland provides the strongest combined position for new-home buyers: uncapped stamp duty exemption plus $30,000 FHOG below $750,000 purchase price. This combination can reduce the upfront cost by $40,000 to $50,000 relative to a state with no new-home incentive.

South Australia also offers uncapped stamp duty relief on new homes and off-the-plan purchases from 13 February 2025, with the FHOG up to $15,000 — the second-strongest combined new-home incentive after QLD.

The ACT offers no FHOG but has the highest stamp duty exemption threshold at $1,020,000 and has removed the income test from 1 July 2026.

The NT's HomeGrown $50,000 grant is the largest single cash amount available, but NT property markets have their own characteristics and the grant should be weighed against location, employment and lifestyle factors.

For existing-home buyers, NSW's $800,000 exemption threshold is the most generous among the larger states, followed by QLD at $700,000. VIC's $600,000 threshold is restrictive in metropolitan Melbourne, and SA and TAS (from 1 July 2026) offer no existing-home stamp duty concession at all.

Internal links for the next decision

• Stamp duty calculator — estimate your duty with state-specific concessions applied
• Savings goal calculator — model your path to the deposit and upfront costs
• Borrowing power calculator — estimate your maximum loan under 2026 APRA settings
• Mortgage repayment calculator — see what monthly repayments look like at your target loan amount
• Income tax calculator — understand your after-tax income to set a realistic savings rate
• Australian borrowing power 2026 — the APRA buffer and DTI cap explained

Information sources

This article draws on published rules and thresholds from each state and territory revenue office as at July 2026: Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office, RevenueWA, RevenueSA, State Revenue Office Tasmania, ACT Revenue Office, and Territory Revenue Office NT. FHOG amounts are published by each jurisdiction's relevant department. Stamp duty concession rules reflect the legislation and administrative guidelines in effect as at the date of writing, including the QLD new-home uncapped exemption from 1 May 2025, SA off-the-plan relief from 13 February 2025, TAS exemption expiry on 30 June 2026, and ACT income test removal from 1 July 2026.

FAQ

Can I get both the stamp duty exemption and the FHOG?

In most states, yes — the stamp duty concession and the FHOG are separate programs with different eligibility criteria. A first-home buyer purchasing a new home within both the concession threshold and the FHOG price cap generally receives both benefits. For example, a QLD buyer of a new $650,000 home receives the uncapped new-home stamp duty exemption and the $30,000 FHOG.

Does the FHOG apply to existing homes?

In most states, no. The FHOG is restricted to new construction, off-the-plan purchases or substantially renovated homes in NSW, VIC, QLD, WA, SA and TAS. The ACT has no FHOG. The Northern Territory's HomeGrown grant is the only program that applies to both new and existing homes.

What happens if the purchase price is slightly above the concession threshold?

In states with a phasing range (NSW, VIC, QLD for existing homes, WA), a concessional rate applies rather than a full exemption. The stamp duty payable rises as the price moves toward the upper limit. In states with a hard cap and no phasing (the uncapped new-home exemptions in QLD and SA), there is no cliff — the exemption has no price cap at all for eligible new homes.

How long does the FHOG take to be paid?

FHOG processing times vary by state but typically range from two to four weeks after settlement or after the application is lodged, whichever occurs later. The grant is paid as a lump sum to the nominated bank account. In practice, the FHOG cannot be relied upon in the funds-to-complete calculation at settlement unless the settlement agent is arranging to receive it directly, which some conveyancers can facilitate.

Is LMI compulsory for first-home buyers with a deposit below 20%?

LMI is generally required for loans where the LVR exceeds 80%, unless the borrower qualifies for a government guarantee scheme (such as the First Home Guarantee) or a professional LMI waiver from the lender. LMI is a one-off premium that protects the lender, not the borrower. The cost is typically capitalised into the loan amount.

General information disclaimer

This article is general information only and is not personal financial, tax, legal or credit advice. Rates, thresholds and policies can change without notice. Arrivau Pty Ltd (ABN 81 643 901 599) provides credit assistance as an ASIC Credit Representative, CRN 530978. Consider your objectives, financial situation and needs, and seek licensed advice before making a financial decision. For an assessment of your borrowing position, speak with an Arrivau consultant — we respond within one business day.