Australian Property Market

Monday, 22 September 2025

Home Guarantee Scheme (HGS) Changes from October - How it affects Home Buyers

Australia’s property rules are shifting: what’s new now, and what’s coming

1) Home Guarantee Scheme (HGS) expands on 1 October 2025

From 1 Oct 2025, the Commonwealth’s HGS (the umbrella for the First Home Guarantee, Family Home Guarantee and Regional First Home Buyer Guarantee) is being broadened to unlimited places, no income caps, and higher property price caps (caps vary by location; check the postcode tool). This is a major change from the previous annual place limits and income tests. 

What it means:

  • More first-home buyers can purchase with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI), because the government guarantees up to 15% (18% for the Family Home Guarantee). Expect extra demand in price bands just under the new caps in each city/region. 

2) ‘Help to Buy’ shared-equity scheme - status update
The federal Help to Buy program (government equity up to 40% for new and 30% for existing homes) progressed during 2025: income/price caps were increased in March 2025, formal Program Directions were registered on 13 June 2025, and the government’s latest progress update notes the program is expected to open later in 2025. (Timing and caps are set out in the federal materials.)

3) Build-to-Rent (BTR) tax settings now in force
Legislation passed in 2024 cut the MIT withholding tax to 15% (from 30%) for eligible BTR projects and lifted depreciation to 4%, measures meant to expand rental supply.

4) Foreign investment & vacancy fee rules tightened
From 1 Jan 2024, purchase application fees for foreigners buying established dwellings were tripled and vacancy fees increased, with stronger compliance powers (ATO). This remains in force and is aimed at discouraging vacant holdings.

State & territory changes that matter for buyers

Stamp duty (transfer duty), grants and some housing levies are set by states/territories, so outcomes vary by location.

New South Wales (NSW)

  • First Home Buyers Assistance Scheme (FHBAS): Full or partial stamp-duty relief on homes under $1 million (full exemption typically up to $800k, with concessions to $1m). Check the official calculator/criteria.

Victoria (VIC)

  • Short-stay accommodation levy: 7.5% levy commenced 1 Jan 2025 on short-stay platforms, part of measures to free up housing.

  • Vacant Residential Land Tax (VRLT): Expanded state-wide from 1 Jan 2025 (previously limited to inner-Melbourne), to nudge unused homes back to market.

  • Off-the-plan duty concession: Extended until 20 Oct 2026 (apartment/townhouse buyers can benefit; rules/thresholds apply).

  • Victorian Homebuyer Fund (state shared equity): After a short extension in July, closed to new applications on 10 Sep 2025 as the state transitions demand to the Commonwealth’s Help to Buy. Existing participants continue under existing terms.

Queensland (QLD)

  • Stamp duty abolished for first-home buyers of new builds: From 1 May 2025, eligible first-home buyers purchasing new homes (or vacant land to build) pay no transfer duty. (Existing-home purchases continue to use the standard first-home concession rules.)$30,000 First Home Owner Grant: The boosted grant now runs through 30 June 2026 for eligible new homes. 

  • First-home duty concession (existing homes): Zero duty up to $700k with concessions to $800k (in effect since 9 Jun 2024).

  • Boost to Buy (state shared equity): Announced in the 2025-26 Budget: up to 30% equity for new and 25% for existing homes (price cap $1 million, income caps apply). See Treasury’s program page. 

South Australia (SA)

  • Stamp duty relief for first-home buyers of new homes/off-the-plan/vacant land: Property value caps were removed for contracts from 6 Jun 2024, making the exemption much broader. (Foreign ownership surcharge concessions were pared back in Feb 2025.) 

Western Australia (WA)

  • First Home Owner Grant: $10,000 for eligible new homes (unchanged).

  • First-home buyer duty rates: Full exemption for homes up to $430k, concessional to $530k (separate thresholds for vacant land). (WA also lifted vacant-land thresholds in its 2025 Budget.) 

Tasmania (TAS)

  • Stamp duty: 100% duty exemption on established homes up to $750k for eligible first-home buyers - extended to 30 June 2026.

  • First Home Owner Grant (new homes): The Government introduced a Bill in 2025 to lift the FHOG to $30,000; the measure progressed through Parliament in mid-2025 (watch for commencement/administration updates from the SRO). 

Northern Territory (NT)

  • HomeGrown Territory grants (time-limited):

    • $50,000 for new homes (owner-builder/off-the-plan included) for transactions 1 Oct 2024 - 30 Sep 2026.

    • $10,000 for established homes until 30 Sep 2025.
      These run alongside certain stamp-duty settings on house-and-land packages.

Australian Capital Territory (ACT)

  • Home Buyer Concession Scheme (HBCS): Means-tested full duty exemption up to $1.02 m (2025-26 settings), with a partial concession above that cap, plus broader duty changes. 

How these changes affect different buyers & owners

First-home buyers (FHBs)

  • The 1 Oct 2025 HGS expansion is the biggest single lever: no income caps and higher price caps should bring many buyers forward, especially in city price bands just under the new caps (e.g., median-ish apartments, townhouses, and entry-level houses). Plan your exchange date for on/after 1 Oct if you want to rely on the new settings. 

  • State grants/concessions stack: e.g., QLD buyers of new builds may combine zero stamp duty (from 1 May 2025) with the $30k FHOG (to 30 Jun 2026); SA buyers of new/off-the-plan benefit from duty relief even at higher price points (caps removed); ACT concessions rise with the new 2025-26 thresholds. Always confirm the exact eligibility/order of application. 

  • NT has unusually large grants but note the $10k established-home grant ends 30 Sep 2025. Timing matters. 

Existing homeowners looking to trade up (non-FHB owner-occupiers)

  • Expect more competition at price points just under the new HGS caps as FHBs enter those brackets. If selling into those bands, that’s supportive; if buying there, allow for stronger auction/silent-sale activity from October. (This is a market effect; the rule changes simply expand eligibility and lower deposit hurdles.) 

  • In VIC, investor calculus shifts slightly due to the short-stay levy and statewide VRLT, which may push some properties back to long-term rental or sale, changing local supply in inner-city/suburban pockets.

Investors & landlords

  • Foreign investor fees/vacancy charges remain tougher (Commonwealth), which can dampen offshore demand for established dwellings. BTR tax settings support institutional rental supply, which can change rent dynamics in precincts with new large BTR projects.

Practical timelines & tips (late-2025 into 2026)

  • If you’re using the HGS, align exchange on/after 1 Oct 2025 to access the unlimited places/no income caps/higher price caps. Confirm the cap for your postcode with Housing Australia’s tool before bidding. 

  • Queensland (FHB of new builds): If your contract settles/exchanges from 1 May 2025, first-home stamp duty is nil; and the $30,000 FHOG remains available through 30 Jun 2026 for qualifying new homes. 

  • Northern Territory: The $10,000 established-home grant ends 30 Sep 2025; the $50,000 new-home grant runs to 30 Sep 2026. Plan contracts accordingly. 

  • Victoria: Be mindful of the short-stay levy (if buying an investment for short-term letting) and VRLT obligations from 2025. Off-the-plan purchases can still access duty concessions through Oct 2026 (subject to value/eligibility).

  • ACT: The HBCS thresholds stepped up for 2025-26 - a meaningful saving for eligible owner-occupiers up to $1.02 m. 

Bottom line

  • Biggest national lever: the HGS expansion from 1 Oct 2025 lowers deposit and LMI barriers for a far larger pool of buyers. That’s likely to lift demand in price bands just under the new caps, especially apartments/townhouses and entry-level houses in capital cities. 

  • Layer state benefits: Your out-of-pocket can change dramatically depending on state, QLD (zero duty on new builds + $30k grant), SA (duty relief with no price caps for new/off-the-plan), ACT (no duty to $1.02 m), TAS (duty-free established to $750k; FHOG uplift pending), WA/NSW (established duty concessions still significant). 

  • Investors should factor in VIC short-stay and vacancy taxes, and continued foreign investor fee/vacancy settings, while BTR tax rules support rental construction that can alter local rental supply over time.

Quick reference (official sources)

  • HGS expansion (from 1 Oct 2025): Housing Australia overview & price-cap tool. nhfic.gov.au

  • Help to Buy (federal) - progress & settings: Government updates (program directions registered; opening expected later in 2025).

  • NSW first-home duty relief: Revenue NSW.

  • VIC short-stay levy & vacant land tax: Premier/Consumer Affairs; SRO off-the-plan concession.

  • QLD first-home duty & grants; Boost to Buy: QRO; Qld Treasury; “A Place to Call Home” initiatives. A Place To Call Home

  • SA first-home duty relief (caps removed): RevenueSA. revenuesa.sa.gov.au

  • WA grants/duty thresholds: WA Government / Department of Finance and State Revenue. sro.tas.gov.au

  • TAS duty exemption (established homes): State Revenue Office Tasmania; FHOG uplift bill (watch commencement). parliament.tas.gov.au

  • NT HomeGrown grants: NT Treasury/Revenue & guidance. treasury.nt.gov.au

  • ACT HBCS thresholds (2025-26): ACT Revenue Office. ACT Revenue Office - Website








at
Labels: ,