What government grants are available for building a first home?

One of the strongest reasons to build a first home rather than buy established is the support available. New homes attract the most generous mix of grants, stamp duty savings and federal schemes, and they can often be combined. Here is the picture as it stands in 2026, with the reminder that amounts and rules are set by governments and change, so confirm the current detail before you rely on it.

The First Home Owner Grant

The First Home Owner Grant, or FHOG, is the headline grant, and it generally applies to new homes, which is exactly what you are creating when you build. It is administered by each state and territory, so the amount and rules differ. As at 2026, for example, it is 15,000 dollars in South Australia, with other states setting their own amounts and caps. Because it varies and changes, confirm the current figure with your state revenue office.

How the grant is paid for a build

For a build the grant is generally not paid upfront. It is usually paid at a construction milestone, often around the slab stage, or on completion depending on the state, and it is commonly processed through your lender. Eligible first home buyers can often put it toward their deposit and upfront costs, so it reduces what you need to have saved, as long as you plan around the timing.

Stamp duty concessions on new homes and land

Stamp duty relief is often the largest saving of all, and it is generous for new builds. Many states now waive or heavily reduce stamp duty for eligible first home buyers buying a new home or vacant land to build on, though the thresholds and rules differ by state. In South Australia, stamp duty relief is available for eligible first home buyers on new homes and vacant land. These are run by your state revenue office and have their own conditions, so check what applies where you are building.

The Australian Government 5% Deposit Scheme

On top of the state help, the federal Australian Government 5% Deposit Scheme lets eligible first home buyers build with as little as a 5 per cent deposit, with the Government guaranteeing the gap so you avoid Lenders Mortgage Insurance. New builds are covered, including house and land packages and vacant land with a separate build contract, provided the combined cost sits under your location price cap. Since October 2025 it has had uncapped places and no income caps.

HomeStart for South Australians

If you are building in South Australia, HomeStart, the state government low deposit lender, is another option. It lets eligible buyers build with a low deposit and no LMI, and offers booster loans that can help with budget or upfront costs. It is owner occupied South Australian homes only, but it sits alongside the grant and stamp duty relief rather than replacing them.

The First Home Super Saver Scheme

There is also a federal scheme that helps you save the deposit itself. The First Home Super Saver Scheme lets eligible first home buyers make voluntary contributions into superannuation and later release them, with associated earnings, to put toward a first home. It does not give you money, but it can help you build a deposit in a tax effective way, which is worth knowing about when you are saving to build.

How the support stacks

The real power for first home builders is that these can often be combined. An eligible buyer might use the 5 per cent deposit scheme to get in with a small deposit and no LMI, receive the First Home Owner Grant toward their costs, and pay reduced or no stamp duty on a new home or land, all on the same build. That stack is support an established home buyer simply does not receive. Note that the 5 per cent scheme and the separate Help to Buy shared equity scheme cannot be combined.

Check the current rules, and get advice

Because grants, caps and stamp duty rules are set by governments and change regularly, the figures here are a guide, not a guarantee. Confirm the current detail with your state revenue office and Housing Australia, and consider getting advice, because a broker can help you work out exactly which grants and schemes you qualify for and how to stack them for your build.