The federal schemes test the borrower. Most state grants test the purchasers. That difference is where a lot of couples get a confusing answer.
You're a first home buyer. Your partner isn't. They've owned a home for years — maybe still do.
Whether you can still get a grant, a duty exemption or the 5% Deposit Scheme depends on which of you is actually buying, and how long ago the property was sold.
The short version
Federal schemes look at the borrower. If the person taking out the loan has never owned property, the 5% Deposit Scheme and Family Home Guarantee are available on the loan — but your partner's ownership still affects the state grant and duty concession in most states.
Rule one: the state generally looks at both of you
This is the part that catches people. The federal schemes care about who is borrowing. Most state grants and duty exemptions care about who is buying, and they count both applicants.
| Situation | 5% Deposit Scheme | State grant | Duty exemption |
|---|---|---|---|
| Neither of you has ever owned a home | Eligible | Eligible | Eligible |
| You've never owned; partner owned and sold 8+ years ago | Eligible | Usually | Usually |
| You bought alone, now buying together | Partner may be eligible | Not eligible | Not eligible |
| Either of you currently owns a home | Not eligible | Not eligible | Not eligible |
| Buying with a friend, not a partner | Not eligible | Not eligible | Not eligible |
Indicative only. Every state tests this slightly differently and the rules change. Verify with the state revenue office before you rely on it.
Rule two: "first home buyer" has two different meanings
This is the confusion behind most of the bad advice you'll read online.
Borrowing test
- Who is applying for the loan?
- Has that individual ever owned property in Australia?
- National and consistent across all states
Grants and duty test
- Who is the purchaser — all of them, usually
- Has any applicant previously received a first home owner grant?
- Different in every state
So a couple can find themselves in a strange position: the federal scheme says yes, the state says no. That's not a contradiction — they're testing different things.
Rule three: previously receiving a grant often ends it permanently
This one catches experienced buyers, not just first-timers. In several states, if you or your partner has ever received a First Home Owner Grant — even years ago, even for a property you no longer own — you are permanently barred from receiving another.
Receiving an exemption is different from receiving a grant, and the rules vary by state. Some have a time limit, some don't.
The question to ask before you get engaged
"Has either of us ever received a first home owner grant or an exemption — in any state, at any time?"
Ask it early. Finding out at settlement, after you've exchanged and put a deposit down, is an expensive way to learn it.
Rule four: owning somewhere else still counts
The most common expensive surprise
Owning property overseas counts. A New Zealand, UK or US property you've owned or lived in as your main residence generally disqualifies you from Australian first home buyer concessions.
Renting abroad is different. Living in a rental overseas does not disqualify you.
What this means in practice
- Work out who is actually borrowing. The federal schemes look at the borrower. If only one of you applies for the loan, that's the person the scheme assesses.
- Then check the state rules separately. Grants and duty exemptions usually assess all purchasers, regardless of whose name is on the loan.
- Ask about prior grants explicitly. "Did you ever get one before?" not "are you a first home buyer?" — different question, and the answer you need is the first one.
- Count overseas property. Owned, yes. Rented, no.
- Get it in writing from the revenue office, not from an agent, a broker, or a forum.
Why the states test both purchasers
A duty exemption is worth $10,000 to $30,000 in avoided tax. If the intent were only to help genuine first home buyers, testing a couple where one person already owns a home would defeat it — the couple could be financially comfortable and still claim it. That's the reasoning, whether or not you agree with it.
Your options if you're not eligible
- Buy without the concession. Full duty applies, but you can still use the federal 5% Deposit Scheme if the borrower qualifies. The concession is lost; the deposit access isn't.
- Buy alone. If only one applicant buys, only one applicant's history is assessed. This is a significant decision and has consequences for ownership, so get advice before taking it.
- Wait. In some states the lookback period eventually expires. Rare, and it can be a long wait — but it's worth checking the legislation.
- Ask about a First Home Owner Grant for an established home. Very few states offer this. NSW, Victoria and WA no longer do. Others occasionally do, for new homes only.
We publish general information, not legal or financial advice. Off-the-plan contracts, conveyancing and settlement law vary by state and by individual circumstances. Always have your own independent legal adviser review any contract before you sign — the cost is trivial against the risk. Found something wrong? Tell us.