Government helps for first home buyers

The First Home Owner's Grant (FHOG) was introduced by the Commonwealth Government in July 2000, to offset the impact of the GST for first home buyers. Eligible applicants receive a one-off cash payment of up to $7,000 to use towards their deposit.

You must be buying or building a home to live in within twelve months after settlement, and you must live in the home for at least six consecutive months starting within twelve months of purchase. You or your spouse must be a citizen or permanent resident of Australia.

An additional incentive has been introduced for those entering a contract to purchase or construct a home between 14 October 2008 and 30 June 2009. This is called the First Home Owners Boost, and may entitle a first home buyer to an additional boost payment of $7,000 (meaning $14,000 in total if combined with FHOG) if buying an existing home, or $14,000 (or $21,000 if combined with FHOG) for a new constructed home.
State Governments also help first home buyers, with stamp duty concessions.

In N.S.W., the First Home Plus Scheme provides stamp duty and transfer duty exceptions and mortgage duty exemptions for people buying or building their first home, or buying vacant land on which to build their first home. To qualify, you must be a natural person at least 18 years old, and you must occupy the home as your principal place of residence for a continuous period of at least six months starting within a year of settlement.
Eligible buyers pay no transfer or mortgage duty when buying homes priced up to $500,000.

Duties on houses valued between $500,000 and $600,000 are reduced. Duty on a $550,000 house will be reduced $8,995 from the usual rate of $20,240.

Buyers of vacant residential land pay no duty on land worth up to $300,000, and pay reduced rates on land worth $300,000 to $450,000. Duty on land worth $420,000 will be reduced by $1802 from the usual duty of $14,390.

If you are buying a property with another party who has owned property previously, proportional concessions may be allowed. However, if your spouse previously owned a home or received a First Home Plus benefit, you are not entitled to concessions, even if you are buying solely in your name.