Don’t leave money on the table: schemes and concessions available for property buyers in 2022

Property continues to be one of the safest and most rewarding investment options in Australia, and Canberra is one of the fastest growing across the country.

State and federal government initiatives are making it easier for all types of people -not just first home buyers - to benefit from the dependable property market with new grants and schemes announced in 2022.

Whether you are a first home buyer, looking to downsize, have had a change in circumstance or are looking to venture to a new area, there are options available to you.

Stamp Duty Concession
Stamp duty waived for off-plan units under $600,000

You can avoid paying stamp duty by purchasing a unit off-plan if it is under $600,000.

To qualify you need to:

• Exchange on or after July 2022
  Have a deposit of between 5 and 20% of the purchase price in savings
• Be an Australian citizen aged 18 years or over
• Meet income and property price threshold requirements

First Home Guarantee
Lenders Mortgage Insurance (LMI) waived even for a 5% deposit

Usually if you have less than 20% of the purchase price as your deposit you would need to pay LMI. Under this scheme the government is waiving that fee if you have just a 5% deposit. Previously named the Loan Deposit Scheme (FHLDS), the scheme was introduced in 2020. In the 2022 Federal Budget the government increased the number of places available from 10,000 to 35,000, released on 1 July each year.

To qualify you need to:

• Apply for the FHLDS through a participating lender or mortgage broker. A list if participating lenders can be found on the National Housing Finance and Investment Corporation’s (NHFIC) website.
• Be a first time buyer in Australia
• Have a deposit of between 5 and 20% of the purchase price in savings
• Be an Australian citizen aged 18 years or over
• Meet income and property price threshold requirements

The Family Home Guarantee Scheme (FHG)
Reduced deposit requirements and LMI waived for single parents.

Under the FHG scheme, single parents with dependents can secure a home with as little as a 2% deposit and avoid LMI to build or buy a family home. 10,000 places are available in the scheme, released on 1 July each year.

To qualify you need to:

• Be a single parent with at least one dependent living in your home
• Not currently own a home
• Have a deposit of at least 2 per cent of the property’s value
• Be an owner-occupier (not an investor)
• Meet income and property price threshold requirements
• Be an Australian citizen aged 18 years or over

More information about the FHG is available on the NHFIC website. 

First Homeowner Grant (FHOG): one-off payment for new homes.

The FHOG is a national scheme, funded by the states and territories. Positioned as an economic stimulus tool, the FHOG changes from year to year to reflect housing affordability and, in most cases, is worth between $10,000 and $15,000.

Each state and territory has its own rules, however, as a rule of thumb, to be eligible, participants must:

• Be an Australian citizen or permanent resident
• Be aged 18 or over
• Never have owned property in Australia
• Be an owner-occupier (not an investor)
• Meet property price threshold requirements

Note: Application process and eligibility criteria vary by state or territory.

To qualify you need to:

• Be a first time buyer in Australia
• Make voluntary contributions to your superannuation up to $50,000
• Have not previously had funds released from superannuation under the scheme
• Be an Australian citizen 18 years or over
• Meet income and property price threshold requirements

More information about the FHSS is available on the Australian Taxation Office (ATO) website.

First Home Super Saver Scheme (FHSS)
Use voluntary superannuation contributions for your deposit

The FHSS is designed to assist first home buyers in saving faster, using concessional tax treatment of superannuation. First home buyers can make voluntary super contributions and withdraw this amount for the deposit on their first home. From 1 July 2022 the government increased this amou8nt from $30,000 to $50,000. Only voluntary contributions can be accessed as part of this scheme.

Stamp duty concessions

Stamp duty is a tax designed to cover the costs of documents and transactions, such as property transfers. How much stamp duty you pay is determined by the property’s value and the state in which you are buying.

In certain cases, namely for first home buyers and off-the-plan purchases, stamp duty may be waived or discounted. View the state sections below for a look at stamp duty concessions and requirements.

Applying for a government grant

Talk to your bank or mortgage broker about applying for these schemes prior to submitting your home loan application.
You may be eligible for more than one grant or scheme so talk to an expert as early as possible in your house hunting process.

Your local Independent Property Group real estate agent can help you find the right options for your lifestyle.

Get in touch today.