Keeping with a well-established pattern of trying to boost first-home buyers into Australia’s booming property market, the federal government have introduced a suite of both new and expanded incentives under the 20-21 federal Budget.

Expansion of the first Home Loan Deposit scheme. An additional 10,000 places will be available for new homes under the New Home Guarantee scheme, on top of the current 10,000 places available for existing homes. The scheme allows first home buyers to purchase property with a 5% deposit, with the government acting as guarantor for the extra 15%, thereby avoiding lenders mortgage insurance.

Introduction of the Family Home Guarantee for single parent families. This new scheme functions similarly to the first home loan deposit scheme. Applicants will be able to purchase a home with as a deposit as low as 2% of the purchase price, with the government guaranteeing up to 18% of the deposit thereby avoiding lenders mortgage insurance. The scheme is for both first time buyers and returning buyers to the property market who are single parents of dependant children, purchasing a principal place of residence. There will initially be 10,000 places available.

Cap increase on the existing Super Saver Scheme. This scheme has been around since 2017 and allows a prospective first home purchaser to make voluntary contributions into your super fund to save up for a first home deposit. The scheme has the advantage of allowing a first home buyer to take advantage of concessional tax treatment of super, which could allow a prospective homeowner to potentially save upwards of an additional $2,500 every year, as well as potentially earn interest. Previously, the scheme capped total savings at $30,000; under the new federal budget this cap has increased to $50,000. Contributions are capped at $15,000/year.

First Home Buyers can also benefit at the state level. A suite of proposed tax cuts under the Victorian Budget will reduce stamp duty for first home buyers, and increased concessions are becoming available for off-the-plan properties. The Victorian budget is also introducing a new 50% concession for new residential properties that have been on the market for less than 12 months, up to the value of $1 million, applicable to contracts entered into between 1^st July 2021, to 30^th June 2022. Properties worth up to $1 million in greater Melbourne that have been left unsold for more than twelve months, will benefit from massive concessions on stamp duty, going as high as a full 100% concession.