Top Strategies to Use First Home Buyer Numbers Well

The numbers that matter most to a first home buyer are scheme price caps, income thresholds and deposit rules, because they decide which pathway you can use.

For public servants, a steady income makes these figures easier to plan around. It does not make them automatic. This article covers the federal figures, how each one works, and the trade-off attached to each.

Which First Home Buyer Numbers Matter Most?

Five figures do most of the work: the deposit percentage, the property price cap, the income threshold, the super release limits and the state grant or duty rules. Each one decides whether a scheme is open to you.

Under the Australian Government 5% Deposit Scheme, eligible first home buyers can purchase with a 5% deposit, and eligible single parents or legal guardians with a 2% deposit. Help to Buy is a separate scheme. It needs a deposit of at least 2% from savings, plus a financial capacity test by the lender. Your borrowing capacity sets how much of the gap you can cover yourself before any scheme is needed.

5% Deposit Scheme Price Caps by State

The 5% Deposit Scheme has a price cap that depends on where the property is, and both the purchase price and the lender's valuation must sit at or below it. The caps for capital cities and regional centres, and then for other areas, are:

• New South Wales: $1,500,000 and $800,000
• Victoria: $950,000 and $650,000
• Queensland: $1,000,000 and $700,000
• Western Australia: $850,000 and $600,000
• South Australia: $900,000 and $500,000
• Tasmania: $700,000 and $550,000
• ACT: $1,000,000 across the territory

The cap for a specific property depends on its suburb and postcode in Housing Australia's postcode search tool. Some suburbs span more than one postcode with different caps.

The trade-off is that the government backing protects the lender, not you. You still pay every loan cost and repayment. You must move in within six months of settlement, and if you move out while the backing is active, the lender may require you to pay LMI. There are no income caps. Our page on the 5% Deposit Scheme for public servants covers how applications work through participating lenders.

How Do Help to Buy Income Thresholds Work?

Help to Buy has income limits of $103,000 for a single applicant and $165,000 for a single parent or for joint applicants, effective from 1 July 2026. They are assessed on the taxable income on your most recent Notice of Assessment, and salary sacrificed income counts.

That last point matters for public servants who salary sacrifice. Taxable income also includes bonuses and termination payments, and Housing Australia has no authority to override the threshold for one-off events.

Here is a Housing Australia example. A buyer wants a $750,000 home in Geelong. They have a $50,000 deposit and $550,000 of borrowing capacity, which leaves a $150,000 shortfall. The Australian Government contributes that shortfall as a 20% share, so the buyer avoids LMI. They make no monthly repayments or interest payments on that share.

The trade-off is that the Government's share rises and falls with the home's market value. Housing Australia reviews your income at least every five years. If your taxable income exceeds the threshold for two consecutive financial years, you may be required to repay part or all of the share, depending on your financial capacity. You also cannot rent out any part of the home without written approval.

Help to Buy price caps match the 5% Deposit Scheme caps in most places. They are lower in New South Wales, at $1,300,000 for the capital city and regional centres, and in the Northern Territory, at $600,000 across the territory. You need conditional approval before you bid at auction or put down a deposit, so a pre-approval conversation comes first. More detail is on our Help to Buy scheme page.

First Home Super Saver Limits: What the Numbers Allow

The First Home Super Saver scheme lets you release voluntary super contributions towards a first home. The limits are $15,000 of voluntary contributions in any financial year and $50,000 in total.

The maximum release is 100% of eligible after-tax contributions plus 85% of eligible before-tax contributions, plus associated earnings. In an ATO example, $50,000 of before-tax contributions gave a maximum release of $47,690. Salary sacrifice amounts count as eligible voluntary contributions, but your employer's compulsory super does not.

Timing matters. You must request the determination before ownership of any property transfers to you, which generally follows settlement. The ATO says release usually takes between 15 and 20 business days. You then need to sign a contract to buy or build within the period the ATO allows, and notify the ATO. If you miss that step, an additional 20% tax applies to the assessable amount released, on top of income tax.

The trade-off is access. Money you put in but do not release stays in super until another condition of release is met. Released amounts are taxed, so speak with your accountant about how it affects your tax return.

Which State Grants and Duty Concessions Can Sit Alongside Federal Schemes?

State grants and stamp duty concessions can generally be used with the 5% Deposit Scheme, and Help to Buy participants can still receive grants and concessions. What you get depends on your state and on whether the home is new or established.

For example, the Northern Territory HomeGrown Territory Grant is $50,000 for eligible first home buyers of new homes. Queensland's first home owner grant is $30,000 for eligible new homes valued under $750,000. Many state grants apply only to new homes, so an established purchase may attract a duty concession instead of a grant. Each state has its own occupancy and ownership conditions, so check the rules for the state you are buying in.

State shared equity and loan schemes are different. Help to Buy participants cannot receive help from those, so you choose one pathway or the other. If you are weighing your options, our first home buying guide sets out how the pieces fit together.

Call one of our team or book an appointment at a time that works for you, and we will match these figures to your income, your state and your deposit.

Frequently Asked Questions