Who Is Eligible for First Home Buyers Grant in Australia?

Eligible for first home buyers grant is determined strictly by state and territory revenue legislation, not by personal circumstances or buyer intention. Despite its broad public recognition, the first home buyers grant (FHBG) is a conditional statutory benefit that applies only where defined legal criteria are met and maintained.

From a legal standpoint, eligibility is assessed by reference to ownership history, property classification, residency status, and compliance obligations that continue after settlement. Failure to meet or maintain these statutory conditions may result in repayment of the grant, interest, and administrative penalties.

Who Is Legally Eligible for the First Home Buyers Grant?

A person is legally eligible for the First Home Buyers Grant only if they have never previously held a relevant ownership interest in residential property and meet all statutory eligibility conditions set by the relevant state or territory revenue legislation. Eligibility is assessed strictly by law, not by intention, financial need, or personal circumstances.

All applicants are assessed jointly, meaning a single ineligible applicant disqualifies the entire application. Because the grant is a statutory entitlement rather than a discretionary benefit, eligibility depends on precise legal definitions of ownership, residency status, and property classification at the time of application and throughout the required compliance period. Buyers uncertain about how these definitions apply in practice often benefit from early advice to find a property lawyer before committing to a transaction.

Core Legal Eligibility Requirements

While each jurisdiction applies its own legislation, eligibility typically depends on the following legally defined criteria.

First-Time Buyer Status Under Revenue Law

Applicants must not have previously held a “relevant interest” in residential property. This includes freehold ownership, certain leasehold interests, and in some cases interests held through trusts or companies. Prior ownership, even for a short period, may permanently disqualify eligibility.

Citizenship and Residency Status

Most jurisdictions require applicants to be Australian citizens or permanent residents. Temporary visa holders are generally excluded unless a specific statutory exception applies. Residency status is assessed at the time of application and must be supported by documentary evidence.

Eligible Property Type

Eligibility is generally limited to:

• Newly constructed dwellings
• Off-the-plan purchases
• Substantially renovated properties as defined by legislation

Established homes are usually excluded. The legal classification of the property—not its age or condition—is determinative.

Property Value Thresholds

Each state and territory sets a maximum property value for eligibility. Exceeding the threshold, even marginally, results in automatic ineligibility. Revenue authorities have no discretion to waive value limits once breached. Buyers assessing value caps should consider how this interacts with grant amounts, including issues discussed in how much is first home buyers grant analyses.

Is There an Income Limit for Eligibility?

No, In most Australian states and territories, there is no income limit for eligibility for the First Home Buyers Grant. The grant is generally assessed based on ownership history, property type, and compliance with statutory conditions, rather than the applicant’s income level.

However, this position is not uniform across all jurisdictions. Some states and territories, such as the Australian Capital Territory, impose household income thresholds as part of eligibility, and temporary or supplementary schemes may also introduce income-based limits. For this reason, income eligibility must always be confirmed by reference to the specific revenue legislation and current scheme rules applying in the property’s jurisdiction.

Can Applicants Be Eligible If They Have Owned Property Before?

No, applicants are generally not eligible for the First Home Buyers Grant if they have previously owned residential property. Under state and territory revenue legislation, prior ownership of a “relevant interest” in residential land usually disqualifies an applicant, regardless of how long the property was held or whether it was used as a primary residence.

This disqualification applies even if the property was later sold, inherited, or held briefly. Eligibility is determined by legal ownership history, not by personal circumstances or financial hardship. As a result, applicants with any prior qualifying property interest should assume ineligibility unless a narrow statutory exception is expressly provided in the applicable jurisdiction.

Eligibility for Couples and Joint Applicants

Eligibility is assessed collectively, not individually.

This means:

• If one applicant has previously owned property, both applicants are ineligible
• Relationship status does not override ownership history
• Joint applications carry shared legal responsibility for accuracy

This collective assessment is a common source of inadvertent non-compliance.

State and Territory Differences in Eligibility

Eligibility requirements vary depending on where the property is located. Differences commonly include:

• Grant amount
• Property value caps
• Residency duration
• Application timing

The applicable law is determined by the location of the property, not the buyer’s place of residence or citizenship.

Residency Obligations After Receiving the Grant

Most jurisdictions impose mandatory post-settlement residency requirements.

Common statutory obligations include:

• Occupying the property within a specified period
• Maintaining occupation as a principal place of residence for a minimum duration

Failure to meet residency requirements may trigger grant repayment, even years after settlement.

Evidence Required to Establish Eligibility

Applicants are legally required to submit:

• Statutory declarations
• Contract documentation
• Proof of identity
• Citizenship or residency evidence

False or misleading declarations may constitute offences under state revenue law and can lead to enforcement action.

How Eligibility Is Enforced After Settlement?

Eligibility for the First Home Buyers Grant is enforced after settlement through ongoing audit and compliance powers held by state and territory revenue authorities. Approval of the grant at settlement does not finalise eligibility or prevent later review.

Revenue authorities may conduct post-settlement investigations to verify ownership history, residency compliance, and the accuracy of statutory declarations. If a breach is identified—such as failure to occupy the property as required or undisclosed prior ownership—the authority may lawfully require repayment of the grant, impose interest, and apply administrative penalties. Enforcement action can occur months or years after settlement, reflecting the continuing legal obligations attached to the grant.

First Home Buyers Grant vs Stamp Duty Concessions

Eligibility for the grant does not automatically confer eligibility for stamp duty concessions.

Each benefit:

• Is governed by separate legislation
• Has independent thresholds and conditions
• Must be assessed separately

Conflating the two is a frequent cause of compliance errors.

Common Legal Errors Affecting Eligibility

Eligibility is commonly lost due to:

• Misunderstanding what constitutes prior ownership
• Incorrect property classification
• Failure to meet residency timelines
• Inaccurate statutory declarations

Once a breach occurs, discretionary relief is rarely available.

FAQs: Eligible for First Home Buyers Grant

The following questions address common legal uncertainties.

Who is eligible for a first home buyers grant?

Only applicants who have never owned residential property and satisfy all statutory requirements in the relevant jurisdiction.

Can permanent residents qualify?

Yes, in most jurisdictions, provided all other eligibility conditions are met.

Does eligibility apply to existing homes?

Generally no. Most grants apply only to new or substantially renovated dwellings.

What happens if eligibility conditions are breached?

The grant may be recovered, and interest or penalties may apply.

Is eligibility assessed individually?

No. Eligibility is assessed jointly across all applicants.

Final Legal Position

Being eligible for first home buyers grant is a legal determination governed by strict statutory rules, not a discretionary benefit based on personal circumstances. Eligibility depends on accurate disclosure, precise property classification, and continued compliance after settlement.

Early legal review—often by choosing to find a property lawyer through LegalFinda—allows buyers to assess eligibility correctly, manage risk, and avoid post-settlement financial exposure arising from unintended non-compliance.